Kioxia Set for $5 Billion Market Valuation Ahead of IPO Approval

TOKYO: Kioxia, a prominent player in the semiconductor industry, is on the verge of making a significant move in the financial markets. Backed by Bain Capital, Kioxia is set to have a market value of approximately 750 billion yen, which translates to about $4.84 billion. This valuation is based on the indicative price for its upcoming initial public offering (IPO). According to sources, the Tokyo Stock Exchange is expected to grant listing approval to Kioxia on Friday.

This market value is noteworthy as it may fluctuate depending on the final pricing during the IPO process. It is important to note that Kioxia, Bain Capital, and the Tokyo Stock Exchange have all refrained from commenting on this matter, and the sources providing this information have chosen to remain anonymous due to the sensitive nature of the details.

In a previous attempt, Bain Capital had to abandon its IPO plans for Kioxia in October. This decision came after investors urged the buyout firm to significantly reduce the valuation it was initially seeking, which was around 1.5 trillion yen. Kioxia, which was formerly known as Toshiba Memory, is now poised to be the first company to operate under new regulations in Japan. These regulations allow firms to file a registration statement and engage with investors prior to receiving listing approval.

Kioxia is targeting a December IPO, a move that could provide the company with essential fundraising opportunities in a capital-intensive industry. However, going public also means that Kioxia will face increased scrutiny regarding its financial performance. In 2018, a Bain-led consortium acquired Kioxia from the troubled conglomerate Toshiba for a staggering 2 trillion yen.

As part of the IPO process, shareholders, including Bain Capital, are expected to sell shares. The financial heavyweights Morgan Stanley, Nomura, and BofA Securities are serving as joint global coordinators for this IPO.

Kioxia's upcoming IPO represents a pivotal moment not only for the company but also for the semiconductor industry in Japan. As Kioxia prepares to enter the public market, it will be interesting to observe how this move impacts its operations and the broader market landscape. Investors and industry watchers alike will be keenly following this development, as it could set a precedent for other companies in the region looking to go public.