News Contact Us

Japanese chipmaker Kioxia plans to delay the release of its IPO

Author : Pankaj Singh | Published Date : 2020-09-29 

Kioxia Holdings, the world's second-biggest producer of NAND flash memory chips, has decided to postpone its plans of releasing an initial public offering (IPO) amidst the ongoing US-China trade war. Reportedly, stricter U.S. restrictions on Kioxia’s prominent client, Huawei Technologies, have hindered the outlook for the Japanese firm.

Additionally, Kioxia investors have been skeptic over the smaller than normal size of new shares, which apparently goes over $800 million. As a result, investors are concerned that this funding will not fulfill the company’s investment plans.

Kioxia, which was previously a part of Toshiba Memory Holdings, intended to release its offering price on Monday. If this release be on track, then Kioxia could have gained an estimated valuation of 1.5 trillion yen ($14 billion), making it the largest IPO of this year in Japan.

Speaking on the move, Nobuo Hayasaka, CEO and President, Kioxia, said that even though the company’s IPO drew considerable interest from numerous investors, Kioxia and lead underwriters believed that it is in their prospective or current shareholder’s best interest to not proceed with the IPO offering during the ongoing concerns about a second wave of the pandemic and continued market volatility.

Credible sources had earlier stated that Kioxia will not give up its IPO during this low period and will try to reschedule it by the end of 2020 or the beginning of 2021.

However, some experts predict that Huawei’s concerns with the US regulators would hardly be solved within the upcoming three to four months, thereby raising some questions on the condition of Kioxia’s IPO and its improvement by then.

For the record, smartphone flash memory accounts for almost 40% of Kioxia's sales. Since the enforcement of tighter restrictions on Huawei, Kioxia faced difficulty in establishing a solid business with the Chinese smartphone manufacturer.

Source Credit: https://asia.nikkei.com/Politics/International-relations/US-China-tensions/Japanese-chipmaker-Kioxia-delays-IPO-amid-US-China-tensions

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Pfizer rolls out vaccine; UK may 40M COVID-19 vaccine jabs by New Year

Published Date: 2020-10-20         Author: Pankaj Singh

With over 100 vaccines being developed and tested to stop the spread of COVID-19, it seems that nations worldwide are finally getting vaccine supplies to tackle the ongoing pandemic. As per the latest news, around 40 million vaccines cloud be heading to the United Kingdom in the next two and half mo... Read More

Nokia to help NASA put 4G network on the moon under lunar base mission

Published Date: 2020-10-19         Author: Pankaj Singh

Reports confirm that NASA is aiming to establish a major presence on the moon through its 2028 goal for building a lunar base, with 4G network being a part of that ambition. The U.S. space agency wants to ensure a sustainable environment for human occupation and has awarded US$370 million worth cont... Read More

Ikea announces plans to buy back used furniture in recycling push

Published Date: 2020-10-15         Author: Pankaj Singh

IKEA, the flat pack furnishings retailer of Swedish origin, has reportedly announced plans to buy back used Ikea furniture in 27 nations in a bid to become more sustainable. The company will give vouchers worth up to 50 percent of the original price, to be spent at its stores. According to source... Read More

© 2020 Fractovia. All Rights Reserved