TOKYO (Reuters) – Japan’s Kioxia Holdings Corp, the world’s second-largest flash memory chip maker and formerly known as Toshiba Memory, is planning a first public offering as early as September, the weekly financial magazine Diamond reported Thursday.
Kioxia, which is controlled by private equity firm Bain Capital, last year abandoned a plan to offer up to 334.3 billion yen ($ 3 billion) in shares, which would have been the Japan’s largest IPO in 2020.
The postponement came amid trade friction between China and the United States over concerns that the Japanese chipmaker would cut it off from key customers.
The Tokyo Stock Exchange is expected to give its approval in July, according to the report, citing sources.
A spokesperson for Kioxia said Thursday the company “is aiming for a timely IPO,” but declined to comment further.
A spokesperson for Toshiba, which still owns 40.6% of the chipmaker, declined to comment.
The Japanese industrial conglomerate, which holds its annual meeting of shareholders on Friday amid an outcry over accusations that management pressured foreign shareholders to back its plans, has sold a controlling stake in the unit commercial of the price to Bain in 2018 in order to raise funds to face a financial crisis.
Fears that trade friction between the US and China could hurt Kioxia’s business has eased and a stock offer this year would come as the US, Europe, Japan and China compete. to build chip production centers in order to secure semiconductor supplies in a context of global scarcity and long-term expectations of growing demand, such as that of automobile manufacturers.
Media reports previously cited rivals Micron Technology Inc (NASDAQ 🙂 and Western digital Corp (NASDAQ 🙂 as potential investors in Kioxia.
Toshiba shares rose 0.4% to 4,860 yen in morning trading.
($ 1 = 111.0700 yen)
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