December 5, 2022

Kioxia to Cancel IPO Plan on U.S.-China Tension: Nikkei Business

(Bloomberg) — Kioxia Holdings Corp., the memory chipmaker spun out of Toshiba Corp. in 2018, will cancel its current initial public offering plan to list its shares on the Tokyo Stock Exchange, the Nikkei Business magazine reported.

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A Toshiba Corp. logo is seen on a controller chip in an arranged photograph in Tokyo, Japan, on Thursday, Aug. 17, 2017. Under pressure from its banks,Toshiba is racing to resolve several final disagreements withWestern Digital Corp.before it can complete a deal to sell its chips business to the U.S. company and other investorsby the end of August, according to people familiar with the matter.

The chipmaker decided not to go ahead as of now because a deepening of political tensions between the U.S. and China is expected to sharply weigh on its profitability, the report said, without saying where it got the information.

A Kioxia spokesperson couldn’t immediately comment on the Nikkei report.

Kioxia priced its initial public offering on Sept. 17 to raise as much as 306.7 billion yen ($2.9 billion). The company had planned to sell 87.63 million new and existing shares at 2,800 yen to 3,500 yen apiece in what would be the country’s biggest IPO this year. That was down sharply from an initial price of 3,960 yen proposed in August.

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