Kioxia is considering raising funds through a U.S. ADR listing, targeting at least $10 billion. The company aims to expand its investor base through a U.S. listing.
Kioxia, a major Japanese memory chipmaker, is considering raising at least $10 billion through a U.S. listing of American depositary receipts (ADRs), Bloomberg reported, citing people familiar with the matter. The discussions are at an early stage, and the size and timing could change, but the company could list as early as next year.
Kioxia ranks fourth in the global NAND flash market, with a 13.6% share of NAND revenue in the April-June quarter. NAND revenue rose sharply year on year, driven in succession by demand for enterprise SSDs and higher NAND prices.
The U.S. listing is intended to expand Kioxia's global investor base and improve trading liquidity. The company is said to be seeking to increase access for U.S. institutional investors through ADRs and pursue the possibility of inclusion in related stock indexes.
Kioxia plans to invest more than ¥5 trillion jointly with SanDisk in NAND production equipment and research and development in Japan, advancing NAND capital investment through 2032. It extended the joint production agreement for the Yokkaichi plant through 2034 and began producing 10th-generation 3D NAND at the Kitakami No. 2 plant. The share price was ¥51,970 as of 11:30 a.m. on the 15th, up approximately 358% since the start of the year, although it has fallen substantially from its record high.