Investors pushed Bain Capital to almost halve the valuation it was seeking for Japan's Kioxia in an IPO, leading the U.S. buyout firm to scrap its plans for ...
TOKYO - Investors pushed Bain Capital to almost halve the valuation it was seeking for Japan 's Kioxia in an IPO, leading the U.S. buyout firm to scrap its plans for an October listing of the memory chipmaker, two sources said.
The valuation gap complicates the buyout firm's effort to exit its six-year-old investment in Kioxia. It reflects concerns investors have over the strength of the memory chip market, the sources said. Kioxia has undergone years of upheaval, including its carve-out from scandal-hit Toshiba and stalled merger negotiations with partner Western Digital due to opposition from investor SK Hynix.
The implementation of AI in smartphones and PCs is expected to drive replacement demand next year onwards, he said. "Private equity usually does not buy semiconductor companies, because capital needs are high, and finessing the timing of exit is hard given the industry cycle," said Damian Thong, head of Japan research at Macquarie Capital Securities.
"It would be reasonable to have Kioxia IPO at a lower valuation first, and let the true value be discovered as it rerates in the market," said Macquarie's Thong.Bukayo Saka hands Arsenal injury scare after limping off for EnglandAlice Lowe's Timestalker is out now in UK and Irish cinemas, and the historical sci-fi rom-com is one of the best British films of the year.
Japan NAND Kioxia Valuation Citing Sources
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