Chipmaker Kioxia to raise 85.3 bn yen in Japan IPO; SK Hynix to retain stake
Aug 29, 2020 (Gmt+09:00)
Global memory-chip maker Kioxia Holdings Corp., held by US private equity firm Bain Capital, is expected to raise 85.3 billion yen (953.6 billion won) in fresh funds through its initial public offering in Japan. South Korea’s SK Hynix Inc., which owns part of Kioxia, says it won’t unload its stake in the Japanese chipmaker even after the IPO.
The Tokyo Stock Exchange gave Kioxia the go-ahead for its IPO plan on Thursday, paving the way for its listing on the Japanese bourse on October 6. The indicative IPO price of 3,960 yen a share would value Kioxia, the world’s second-biggest producer of NAND flash memory chips, at 2.13 trillion yen, making it the biggest Japanese IPO of the year.
The number of new shares to be allotted to general investors is set at 21.56 million or 4.2% of Kioxia’s total shares, which would result in 85.3 billion yen in fresh funds via the IPO. As well as newly issued shares, stocks will also be sold by Bain and other existing investors.