Memory chipmaker Kioxia scraps October IPO plan

Japan's memory chipmaker Kioxia has scrapped its plan for an October IPO in Tokyo, according to a Reuters report. 

Bain Capital, which holds a 56% stake in Kioxia along with SK hynix, had been targeting a market value of 1.5 trillion yen (USD 10.39 billion) for Kioxia.  

However, a significant drop in stock prices of its competitors has made this challenging.  

Kioxia, which has been hit by a slump in the memory chip market, has reported better results as average selling prices increase.

Kioxia, previously Toshiba Memory, was sold by Toshiba to a consortium led by Bain Capital for USD 18 billion in 2018.

Kioxia’s IPO could be delayed until November or later, according to another report by MoneyDJ.

This is not the first time Kioxia scrapped its IPO plan. It had previously scheduled to be listed in 2020. But the company gave up the plan in September 2020 amid market volatility and concerns about another wave of COVID-19. 

Kioxia is the world’s third-largest supplier of NAND flash memory. It ranked third in revenue in the second quarter of 2024 in the NAND Flash market, with a 13.8% market share, after Samsung (36.9%) and SK Group (22.1%), according to TrendForce. 

Currently, a special-purpose entity formed by Bain Capital and SK hynix holds a 56% ownership stake in Kioxia, with SK hynix having the option to control up to 15%, according to a report in Tom’s Hardware. Toshiba has a 41% share in the company.