In accordance with the planned schedule, the Japanese company Kioxia has determined the parameters of the initial public offering of shares on the Tokyo Stock Exchange at a price of 1,455 yen per share, which allows us to estimate its capitalization at the equivalent of $5.2 billion. Taking into account additionally distributed shares, the company will be able to attract $800 million
Image source: Kioxia
The placement price fell in the middle of the range that Kioxia initially expected. The largest holders of Kioxia shares, represented by Bain Capital and Toshiba, will be able to sell them during the IPO, and Kioxia itself will also issue new shares worth $206 million. Let us recall that in October Bain Capital, which owns the bulk of Kioxia shares since 2018, decided to postpone the IPO company, because it expected to estimate its current capitalization twice as high. However, delaying the entry to the stock exchange until December did not bring much benefit from this point of view. The very first attempt to bring Kioxia to an IPO was made four years ago.
The flash memory business, formerly owned by Toshiba, was bought in 2018 by a consortium of investors led by Bain Capital for $13.3 billion at current prices. In fact, the current placement of Kioxia shares will not cover investors’ costs, and they will simply record losses. Technically, Kioxia shares are scheduled to list on the Tokyo Stock Exchange on December 18 this year.