Kioxia is said to delay its plan to list on Tokyo SE

TOKYO • Kioxia Holdings Corp, the memory chipmaker spun out of Toshiba Corp in 2018, will postpone its IPO plan to list shares on the Tokyo Stock Exchange (SE), according to a person familiar to the matter.

Kioxia was scheduled to set its final pricing today before a listing set on Oct 6, the person said. The chipmaker decided to cancel the current IPO because escalating political tensions between the US and China are expected to sharply weigh on its profitability, the Nikkei Business magazine reported yesterday, without citing where it got the information.

Kioxia and a group of investors led by Bain Capital LP plan to seek a listing on the Tokyo bourse at an appropriate time in the future, the magazine reported.

The relationship between the US and China has become increasingly more contentious. The world’s two most powerful economies have clashed over trade, intellectual property, the coronavirus pandemic and national security, including an onerous new security law in Hong Kong.

Kioxia priced its IPO on Sept 17 to raise as much as ¥306.7 billion (RM12.27 billion). The company had planned to sell 87.63 million new and existing shares at ¥2,800 to ¥3,500 apiece in what would be the country’s biggest IPO this year. — Bloomberg