ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Companies

Toshiba spinoff Kioxia set for October IPO in Japan's biggest of year

Memory maker's market cap expected to top $19bn

Kioxia, the world's second-largest maker for NAND flash memory, turned in a $1.6 billion loss in the previous fiscal year.

TOKYO -- Flash memory maker Kioxia Holdings will list on the Tokyo Stock Exchange as soon as October with a market capitalization projected at more than 2 trillion yen ($18.9 billion), making for the nation's biggest initial public offering of 2020.

The Tokyo Stock Exchange is expected to greenlight Kioxia's listing soon.

Kioxia, formerly Toshiba Memory Holdings, is the world's second-largest producer of NAND flash memory chips behind Samsung Electronics. Toshiba has a roughly 40% stake, with the rest held by a consortium of U.S., Japanese and South Korean investors.

Toshiba sold its memory business in 2018 to the consortium led by U.S. buyout firm Bain Capital for roughly 2 trillion yen. The deal was in response to the massive losses at U.S. nuclear power subsidiary Westinghouse Electric. The financial troubles compounded the damage sustained earlier in an accounting scandal.

Upon selling Kioxia to the consortium, Toshiba bought back the partial stake. Toshiba and Bain Capital will sell a portion of their Kioxia holdings as part of the listing.

This divestment is anticipated to come in tandem with a small issuance of new shares. Although such terms as the offering price will depend on investor demand, Kioxia is expected to attain a market capitalization of 2 trillion yen to 2.5 trillion yen.

Toshiba President and CEO Nobuaki Kurumatani said in June that the company will direct half of the sales proceeds toward investor rewards. The rest will be applied in part to growth investments.

The memory business is notorious for highly volatile earnings. Kioxia turned in a 166.7 billion yen net loss for the year ended March 31.

Toshiba, whose shareholders are about 70% foreign, faced pressure from a group of investors pushing for a sale of Kioxia as a means of stabilizing finances. Kurumatani said the Toshiba group has no strategic intention of managing the memory business.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more