KIOXIA Corporation Considers Raising $10 Billion Through U.S. Listing; Shares Rebound 4%

【Financial News, Tokyo—Correspondent Hye-jin Seo】Shares of Kioxia Holdings, a Japanese NAND flash memory maker, rebounded nearly 4% during trading following reports by foreign media that the company is considering raising at least $10 billion (approximately 13.539 trillion won) through a U.S. listing of American depositary receipts (ADRs).
On the Tokyo Stock Exchange (TSE) on the 15th, Kioxia’s shares rose as much as 2,010 yen, or 3.97%, from the previous trading day to reach 52,600 yen. Buying was driven by expectations of fundraising through an ADR listing and increased capital investment in the future. Bargain hunting also emerged after the stock had fallen sharply over the previous two trading sessions.
According to foreign media reports, KIOXIA Corporation is considering listing ADRs in the U.S. market as early as next year. The company is reportedly holding related discussions with U.S. investment banks, including Bank of America (BoA), Goldman Sachs, and JPMorgan Chase.
Through an ADR listing, KIOXIA Corporation is reportedly seeking to increase stock liquidity in the U.S. market, broaden its investor base, and pursue inclusion in major U.S. semiconductor stock indexes. The company officially stated in May that it was preparing an ADR listing to expand its investor base.
However, the specific fundraising amount, listing schedule, issuance method, and lineup of underwriters have not been finalized. It is also unknown whether the funds would flow to the company through a new share issuance or whether the sale of existing shareholders’ stakes would be included.
Meanwhile, existing major shareholders are reducing their stakes in KIOXIA Corporation. According to a change report submitted by Toshiba to Japan’s Kanto Local Finance Bureau, Toshiba’s stake in KIOXIA Corporation stood at 12.84% as of the 7th, down 1.22 percentage points from 14.06% on the 3rd of last month. Bain Capital, a U.S.-based private equity firm, is also selling shares it holds.
KIOXIA Corporation’s share price surged from April on expectations of increased NAND flash demand driven by the expansion of AI data centers, reaching an all-time high of 112,700 yen in late June. After undergoing a correction, it closed at 50,590 yen on the 14th.
[email protected] Hye-jin Seo Reporter