Kioxia, a Japanese memory chip manufacturer, has canceled its plans for an IPO on the Tokyo Stock Exchange scheduled for October.
Originally, Kioxia, which is majority-owned by private equity firm Bain Capital, intended to go public to maintain its competitive edge.
The IPO was expected to raise around $500 million and was anticipated to be the largest IPO in Japan this year.
Kioxia stated that it is preparing for an IPO at the appropriate time but declined to comment further.
Bain Capital had set a market value target of 1.5 trillion yen (approximately 736.71 billion yuan) for Kioxia, but recent stock sell-offs of other listed peers have made this pricing challenging.
For instance, shares of Micron Technology and Samsung Electronics have fallen about one-third from their recent peaks.
Kioxia obtained approval to list on October 6, 2020, but canceled its IPO plans at the last moment.
In the four years since canceling its IPO plans, Kioxia has technically fallen behind SK Hynix, making it more vulnerable in the next downturn. The ongoing decline in NAND chip prices has impacted the company’s ability to invest in R&D and new capacity.
Kioxia also planned to go public in 2021 but was unable to complete its IPO plans.
The company may attempt to list again in the future.
Japan’s IPO market remains very healthy, as evidenced by the recent listings of Rigaku and Tokyo Metro.
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