Kioxia Debuts on Tokyo Exchange with 1440 Yen Initial Price, 4% Rise After Largest IPO of 2024

Dec 18, 2024, 12:11 AM

Kioxia Holdings, a major Japanese memory-chip manufacturer, debuted on the Tokyo Stock Exchange's Prime Market on December 18, 2024. The company's initial public offering (IPO) raised approximately 120 billion yen ($800 million), with an initial price of 1,440 yen per share, falling below the offering price of 1,455 yen. This marked the largest IPO in Japan for the year, with a market capitalization of 776.2 billion yen based on the initial price. Kioxia plans to use the 29.1 billion yen raised to invest in the development of semiconductors for artificial intelligence (AI). The company, formerly Toshiba Memory, was acquired by a Bain Capital-led consortium in 2018. Bain Capital's ownership in Kioxia has decreased from 56% to 52%, while Toshiba's stake dropped from 41% to 32%. Despite the initial price drop, Kioxia's shares rose during the trading session, closing at 1,493 yen, a 4% increase from the IPO price. The tradable share ratio at the time of listing was 28.09%, below the 35% standard required for listing maintenance. Kioxia aims to enhance its competitiveness in the global NAND flash memory market, though it faces challenges such as sluggish demand for PC and smartphone memory and competition from rivals like SK Hynix and Micron.