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Japanese chip giant Kioxia canceled its $3.2 billion IPO plan.

Published :9/29/2020 1:56:14 AM

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Nobuo Hayasaka, the company’s president and chief executive officer, said in a statement: “Both the lead underwriter and Kioxia believe that in the context of continued market volatility and continued concerns about the second wave of the epidemic, an IPO is not in line with current or future shareholders. Best interests."

He said: “As a company, we make disciplined decisions that are in the best interests of all stakeholders, and we will reconsider the IPO in due course. We will not rush.”

Kioxia originally planned to go public on the Tokyo Stock Exchange on October 6, issuing shares worth up to 334.3 billion yen (approximately US$3.19 billion). If not cancelled, this would have been expected to be Japan's largest IPO this year.

Kioxia's goal is to take advanced memory technology as the core, provide products, services and systems that create choices and define the future, respond to the needs of large-capacity, high-performance storage and data processing, and continue to become an industry leader. Officials said that with the development of emerging technologies, 5G, Internet of Things and cloud computing and other new technologies have also created more and more active data, and Kioxia will be able to lead the world to a better digital society through industry-leading technologies. .

According to foreign media reports, Toshiba Memory has previously received nearly 1.3 trillion yen, equivalent to US$11.7 billion, from Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank of Japan, and Japan Policy Investment Bank. And this money will also become the basis for listing. After the name change, the leading investor Bain Capital hopes that Kioxia can speed up its listing, and its market value is expected to reach 2 trillion yen.