[News] Kioxia Finalizes IPO Price, SK Hynix Poised to Become Third-Largest Shareholder

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According to a report from MoneyDJ, citing Reuters, Japanese NAND flash giant Kioxia will debut on the Tokyo Stock Exchange through an IPO on December 18. Kioxia has set its IPO price at 1,455 yen per share, giving the company a valuation of 784 billion yen (approximately USD 6.6 billion).

The Reuters report also indicates that Kioxia has raised 120 billion yen (approximately USD 800 million) in its initial public offering, including an overallotment, as noted in a securities filing on Monday.

The report from MoneyDJ points out that as part of the IPO, Kioxia will issue 21,562,500 new shares. According to Nikkei, filings with Japan’s Financial Services Agency reveal that U.S. investment firm Bain Capital, Kioxia’s largest shareholder, plans to sell 12,651,200 shares in the IPO. This is a 12% reduction from its earlier plan to sell 14,447,400 shares. Bain’s ownership stake, which was expected to decrease from 56% to 51%, is now projected to settle at 52%.

Nikkei also reports that Toshiba, Kioxia’s second-largest shareholder, will increase its offering by 5%, ensuring that the total number of shares sold in secondary sales remains unchanged. Toshiba’s stake in Kioxia will drop from 41% to 32%.

Notably, another Nikkei report highlights the potential impact of South Korean rival SK hynix on Kioxia’s future plans. SK Hynix holds Kioxia convertible bonds through a Bain special purpose company. Once these bonds are converted into shares post-IPO, SK Hynix will become Kioxia’s third-largest shareholder, with a 14% stake.

The Nikkei report notes that until 2028, SK hynix can exercise voting rights for only about 15% of Kioxia’s shares. However, after this period, it will be able to increase its investment and deepen its involvement in Kioxia’s management.

Read more

• [News] Kioxia Reportedly Planning Production Cuts Amid NAND Flash Market Challenges
• [News] Kioxia Reportedly Set to Gain Listing Approval with $4.84 Billion IPO Valuation

(Photo credit: Kioxia)