Kioxia to consider raising US$10 billion in US listing, Bloomberg News reports
Japanese chipmaker Kioxia Holdings is considering raising at least US$10 billion through a US listing of American depositary receipts. The company has engaged lenders including Bank of America, Goldman Sachs, and JPMorgan for an offering that may occur next year. Kioxia aims to boost liquidity in the US and potentially join a semiconductor-focused stock index. The chipmaker's preparations for an ADR listing follow its previous statement in May to broaden its investor base.
Kioxia’s plan to raise US$10 billion in the US reflects a push for greater liquidity and a broader investor base. This is a direct response to the company’s share repurchases in Japan. Access to a semiconductor-focused stock index would also boost visibility for the Tokyo-based firm. This is more than just a capital raise; it is about market positioning.
The strategy matters for Asian chipmakers. It shows a clear preference for US capital markets, even as AI stocks recently saw a dip. The approach allows Kioxia to tap into a deeper pool of investors and potentially increase its valuation. Other Asian tech firms will watch Kioxia’s success in attracting US capital.
The thing to watch is whether Kioxia can achieve its US$10 billion target next year. A successful listing at that valuation would validate the strategy for other Asian companies. Failure to meet this target would cast doubt on the appeal of US listings for Asian chip firms.
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