KIOXIA, a Japanese manufacturer of NAND flash memory chips, is set to go public in October, fueled by the insatiable demand for semiconductors driven by the rise of artificial intelligence (AI). According to Nikkei, the company anticipates a valuation of 1.5 trillion yen (approximately $10.3 billion USD) during the IPO.
KIOXIA intends to utilize the funds raised from the IPO to bolster its production of cutting-edge memory technologies and accelerate the development of next-generation chips. A KIOXIA insider, speaking to Nikkei, highlighted the importance of diversifying funding channels, stating that the company has faced cash constraints in the past, hindering its investment capacity. Another insider acknowledged the current strong demand for memory chips but emphasized the need for caution, recalling the volatility experienced in 2020.
KIOXIA’s path to an IPO has been marked by several delays. The company initially planned for a listing in fiscal 2019, but postponed due to a slowdown in corporate investment in data centers. While the Tokyo Stock Exchange (TSE) approved the listing in 2020, geopolitical tensions between the US and China forced another postponement. A summer 2021 IPO was also considered but ultimately abandoned.
The application approved by the TSE in 2020 valued KIOXIA at 1.5 trillion yen to 1.88 trillion yen ($10.4 billion to $13 billion USD at current rates). Nikkei reports that the current IPO plan aims for a valuation of at least 1.5 trillion yen. The upcoming listing represents a significant milestone for KIOXIA, marking a strategic move to capitalize on the surging demand for memory chips driven by the AI revolution.
