NAND Flash Manufacturer Kioxia Submits IPO Application to Tokyo Stock Exchange, Valuation Exceeds $10 Billion

Kioxia Corporation, a NAND flash manufacturer rebranded from Toshiba Memory, has planned to go public on the Tokyo Stock Exchange. According to a report by Nikkei News, Kioxia has filed for an Initial Public Offering (IPO) with the Tokyo Stock Exchange.

If successful, Kioxia is set to commence public trading on the Tokyo Stock Exchange in October 2024. Through this IPO, Kioxia aims to raise at least 500 million in funds, with an overall valuation exceeding10 billion post-IPO.

Currently, Kioxia ranks as the world’s third-largest NAND flash supplier by shipment volume. Previously, Kioxia sought to merge with Western Digital's NAND business before pursuing a public listing. However, due to shareholder disagreements, the merger was not successful.

For the industry, not merging might be beneficial as a merger between Kioxia and Western Digital's NAND business would have created the world's largest NAND supplier. The merger proposal was halted due to opposition from SK Hynix.

With the rapid development of artificial intelligence technology, the demand for storage chips is steadily increasing. Choosing this moment for an IPO could indeed be a strategic move by Kioxia, potentially attracting more investors.

It's notable that post-IPO, Bain Capital and Toshiba will remain the controlling shareholders. Kioxia's main shareholders are Bain Capital (56.24%), Toshiba (40.64%), and Hoya (3.13%).

Bain Capital's shares include those of SK Hynix, allowing the partnership between Bain Capital and SK Hynix to control most of Kioxia's equity. This partnership is one reason why SK Hynix could oppose the merger between Kioxia and Western Digital's NAND business.

However, the extent to which these shareholders' stakes will be diluted post-IPO remains unclear until disclosures are made by the Tokyo Stock Exchange. The specific IPO documents are expected to be revealed sometime in September.