"Japanese Kioxia to Retry Listing as Early as October"

Major Shareholder Bain Capital Communicates IPO Intent to Creditors
Past IPO and Management Integration Attempts Failed
"IPO Uncertain Without Performance Improvement"

Japanese flash memory manufacturer Kioxia is reportedly considering listing on the Tokyo Stock Exchange as early as October, according to local media including the Nihon Keizai Shimbun (Nikkei) on the 16th. The company also plans to revive its previously halted merger talks with U.S.-based Western Digital.

According to reports, Bain Capital, the major U.S. investment fund shareholder of Kioxia, met with the consortium of banks that lent over 1 trillion yen (approximately 9 trillion won) to Kioxia on the 15th to convey its intention to go public. Kioxia, which started as a Toshiba subsidiary, was sold in 2018 to a Korea-U.S.-Japan consortium consisting of Bain Capital and SK Hynix, among others.

Kioxia ranks as the world's third-largest company in NAND flash production, following Samsung Electronics and SK Hynix. The consortium that acquired Kioxia aimed to enter the stock market in 2020 to recover its investment, but the plan was derailed due to U.S.-China trade tensions and deteriorating market conditions.

Last year, the strategy shifted toward increasing Kioxia's corporate value through a merger with Western Digital's semiconductor division in the U.S. to facilitate a sale, but this was abandoned after SK Hynix expressed opposition.

The outlook for Kioxia's renewed IPO attempt remains uncertain. The company recorded a loss of 254 billion yen (approximately 2.3 trillion won) from April to December 2023 due to a decline in demand for its core memory semiconductor products, making it difficult to raise substantial funds for research, development, and capital investment.

The Yomiuri Shimbun noted, "The reason for discussing Kioxia's IPO is the expected increase in semiconductor demand for data centers driven by the AI industry boom," but added, "If Kioxia's performance does not improve, the IPO may not be approved, and even if successful, it may fail to secure the desired stock price and capital." However, it also mentioned, "If the IPO is completed, merger talks with Western Digital will likely resume."