Bain-backed memory chipmaker Kioxia launches $3.6b IPO

Kioxia Holdings, the world’s second-largest maker of flash memory chips, will list on the Tokyo Stock Exchange on Oct. 6 in an initial public offering worth up to $3.6 billion, a regulatory filing showed on Thursday.

The listing would be Japan’s biggest IPO this year and allow a partial exit by U.S. private equity firm Bain Capital, which led a consortium that bought the former unit of Toshiba Corp in 2018.

Kioxia, formerly known as Toshiba Memory, will offer up to 95.5 million shares in the IPO, including an overallotment in the event of exceptional demand, the filing with the Ministry of Finance showed.

At Kioxia‘s indicative price of 3,960 yen per share, the company will offer up to 378 billion yen ($3.6 billion) in shares and have a market value of 2.13 trillion yen ($20.1 billion).

The Bain-led consortium, which includes South Korean chipmaker SK Hynix Inc, acquired Kioxia for 2 trillion yen in 2018 when Toshiba scrambled to plug a financial hole caused by the failure of its U.S. nuclear power unit.

Bain, which initially planned to list Kioxia last year, pushed back the listing because of deteriorating market conditions.

For the year ended March, Kioxia reported an operating loss of 173.1 billion yen, versus a year-before profit of 45.9 billion yen.

Flash memory prices have been unstable, but analysts see strong demand from cloud service providers and data centre players needing more data storage for artificial intelligence, autonomous driving and the Internet of Things.

Toshiba, which reinvested to take a 40% stake in Kioxia, said in a statement it planned to sell down the stake to 32% and will return a majority of the net proceeds to shareholders.

Bain’s stake will drop to 47.8% from 56.2% now.

Morgan Stanley, Goldman Sachs, JPMorgan and Nomura are among joint global coordinators for the IPO.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.