Kioxia's shares rise 6% in Japan IPO debut
Japanese chipmaker Kioxia made its market debut on Wednesday with shares rising 6%, reaching a valuation of 820 billion yen ($5.34 billion). The company, which specializes in memory chip manufacturing, successfully raised 120 billion yen in Japan's third-largest IPO of the year.
Initially opening at 1,440 yen, slightly below the IPO price of 1,455 yen, the shares recovered to trade at 1,549 yen by early trading. This performance signals strong investor confidence in the company's prospects and marks a significant milestone in Kioxia's complex corporate history.
The company, previously known as Toshiba Memory, was acquired by a Bain-led consortium in 2018 for 2 trillion yen following Toshiba's financial crisis stemming from its nuclear business losses. The path to this IPO has been challenging, with previous attempts postponed due to global chip market uncertainties and U.S.-China tensions.
Bain Capital's stake will decrease from 56.2% to 50.7% post-IPO, with the firm opting to retain a substantial portion of its shareholding. The IPO comes during a strong year for Japanese public offerings, which have raised over $6 billion in 2024, marking the best performance since 2021.
Despite recent financial improvements, with net income rising to 106 billion yen in the September quarter from 69.8 billion yen in the previous quarter, some analysts express concerns about Kioxia's future in the competitive memory chip market, particularly regarding its potential benefits from the AI chip boom.
The successful listing represents a significant development for private equity exits in Japan, with market observers noting positive reactions to the offering's reasonable valuation. The company now faces increased scrutiny as a public entity in a capital-intensive industry.
