Kioxia canceled its entry into the stock exchange due to the fact that it was valued at half the price expected

Kioxia, the company that inherited Toshiba’s flash memory business, was due to go public this month. The current shareholders of Kioxia decided to abandon this event, since investors valued its assets at a maximum of $5.4 billion, while Bain Capital expected at least $10 billion.

Image source: Kioxia

Reuters reported this last weekend, explaining the reasons for Kioxia’s refusal to enter the public stock market in October of this year. It should also be remembered that in 2018, a consortium of investors led by Bain Capital paid $13.4 billion for the assets of Toshiba Memory Corporation, so even an IPO scenario optimistic for existing shareholders would imply recording losses on this transaction.

Kioxia’s $5.4 billion asset valuation reflects how concerned investors are about the current state of affairs in the NAND memory market. A representative of a hedge fund cited by Reuters explained that although an IPO of Kioxia does not seem feasible in the current environment, the situation could change for the better by the end of the fiscal year, which ends in March 2025.

The boom of artificial intelligence systems in the NAND market was reflected to a lesser extent, since the emerging increase in memory prices gave way to stabilization. Only next year will the need to increase storage capacity in client devices due to the spread of AI systems cause an increase in prices for this type of memory, according to Omdia analysts. Kioxia remains the third-largest solid-state memory manufacturer in the world by revenue with a share of 13.8%.

admin

Share
Published by
admin

Recent Posts

A demo of Dispatch, a comedy game about a superhero agency from the former developers of Tales from the Borderlands and The Wolf Among Us, has been released on Steam

Developers from the American AdHoc Studio, founded by former Telltale Games, Ubisoft and Night School…

6 hours ago

Digma DP-FHD800A LCD Full HD Projector Review: A Modern Approach

When you think about a home theater, you immediately imagine bulky projectors with a bunch…

6 hours ago

Lian Li Introduces HydroShift II LCD-C Liquid Cooling System with 360mm Radiator and Three Configurations

Lian Li has introduced a series of maintenance-free liquid cooling systems HydroShift II LCD-C. It…

6 hours ago

Apple: App Store App Developers to Earn $406 Billion in 2024

Amid mounting pressure from U.S. regulators, Apple has released the results of an independent study…

6 hours ago

ASRock Admits Its Motherboards Break Ryzen 9000 Processors

Following a report from YouTube channel Tech Yes City that ASRock linked Ryzen 9000 processor…

6 hours ago

Apple to Change OS Numbering: iOS 26 to Come This Year Instead of iOS 19

Apple is preparing a large-scale rebranding of its line of operating systems. This was reported…

1 day ago