Kioxia Holdings Corp, the world’s second-largest memory chip maker, is abandoning its Initial Public Offering (IPO) plans as tensions between China and the US rise. This was announced by the publication Nikkei Business.
The decision to abandon the IPO was made after Kioxia earlier this month determined a preliminary price range for the IPO in Tokyo, which resulted in a market value below 2 trillion yen (approximately $18.94 billion at current exchange rates) – the price that a group of investors led by the U.S. private investment company Bain Capital paid for the company two years ago.
Kioxia, formerly known as Toshiba Memory, was scheduled to list on the Tokyo Stock Exchange on October 2020. A Toshiba statement said the company could not comment on Kioxia’s plans. Contact Bain Capital for comments the agency Reuters failed.
The memory chip market is preparing for the effect of the tighter U.S. restrictions against Huawei Technologies, which came into force this month. According to Kioxia, tighter restrictions may cause oversupply of memory chips and lower prices.