Kioxia IPO Targets  ¥100BN on Tokyo Stock Exchange

In an upcoming move in the financial markets, Kioxia, a company backed by the private equity firm Bain Capital, is set to make a significant stride with its initial public offering (IPO) where it aims to raise  ¥100 billion, which is equivalent to approximately $645.45 million, excluding the overallotment options. The IPO is drawing attention as it will place Kioxia's market value at an estimated ¥750 billion or approximately $4.85 billion.

The offering will see both Bain Capital and Toshiba, the former parent company of Kioxia, selling shares. Kioxia itself also plans to issue new shares, raising a capital of about ¥27.7 billion. The indicative price for the shares, both the secondary offering and the new shares, has been set at ¥1,390 according to the regulatory filings.

The context of this IPO carries a noteworthy history. A Bain-led consortium acquired Kioxia, which specializes in memory semiconductor solutions, from Toshiba for a substantial amount of ¥2 trillion in the year 2018. However, Kioxia's journey to the public markets has not been without setbacks. In 2020, Bain Capital faced a predicament when it had to scrap the IPO plans due to a discord over the company's valuation with potential investors.

Despite past difficulties and market uncertainties, Kioxia is scheduled to list on the Tokyo Stock Exchange on December 18. This move is significant not only for the company and its investors but also for the market, signaling confidence in Kioxia's future prospects and growth trajectory. Bain's previous encounter with IPO challenges for Kioxia has paved the way for this renewed attempt, reflecting a recalibration of the company's valuation and strategy.

The IPO represents a crucial event for all the stakeholders involved. Kioxia's offering is indicative of the company’s evolution and the semiconductor industry's dynamics. The successful listing of Kioxia on the Tokyo Stock Exchange will cement Bain Capital's strategic investment and may influence future investments in the technology sector.