Bain-backed memory chipmaker Kioxia has scrapped its plan for an initial public offering (IPO) in October, three sources familiar with the matter said.
Bain had been targeting a market value of ¥1.5 trillion ($10.39 billion) for Kioxia but the recent sell-off in shares of its listed peers has made that pricing challenging, two of the sources said. Shares in Samsung Electronics, SK Hynix and Micron Technology are down roughly a third from recent highs.
Kioxia had been targeting an IPO in late October, it was reported previously. Bain declined to comment. Kioxia said it is preparing to list at the appropriate time.
Japan’s stock market suffered a historic rout in early August, sparked by a surprise rate hike and fears of a U.S. recession, before regaining ground. The benchmark index is up around 13% year-to-date.
Subway operator Tokyo Metro and X-ray testing tool maker Rigaku are aiming to raise a combined $3.1 billion in IPOs next month. The two deals, if successful, will more than double the value of IPOs launched in Japan so far in 2024, according to LSEG data.
Kioxia, which has been hammered by a slump in the memory chip market, has reported improving results as average selling prices increase. The chipmaker has a 14% share in the flash memory market, according to TrendForce.
Kioxia, previously Toshiba Memory, was sold by Toshiba to a consortium led by Bain Capital for $18 billion in 2018. Plans to IPO were postponed in 2020 amid uncertainty in the global chip market stemming from U.S-China tensions.
Merger talks with Western Digital stalled last October because SK Hynix opposed the deal.