Bain-backed chipmaker Kioxia scraps October IPO plan, sources say
Adds details of performance of peers in paragraph 3 and IPO and stock market trends in paragraphs 6-9
By Miho Uranaka and Sam Nussey
TOKYO, Sept 24 (Reuters) -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 yen ($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 005930.KS, SK Hynix 000660.KS and Micron Technology MU.O are down roughly a third from recent highs.
Kioxia had been targeting an IPO in late October, Reuters has 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 .N225 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 WDC.O stalled last October because SK Hynix opposed the deal.
($1 = 144.3200 yen)
Reporting by Miho Uranaka and Sam Nussey;
Editing by Chang-Ran Kim and Miral Fahmy
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