According to reports obtained by the Wisdom Finance APP, private equity giant KKR (KKR.US) plans to sell about half of its holdings in Kokusai Electric Corp., a Japanese chip maker. As a result of this news, Kokusai Electric's stock price fell 12% at one point on Wednesday, marking the biggest drop since the company went public in October last year.
KKR currently holds about 43% of Kokusai and plans to sell about half of its shares in the company to investors, with Kokusai buying back these shares in the market.
Prior to the sale news, Kokusai Electric's stock price had more than doubled since its listing due to market interest in hardware and infrastructure that supports artificial intelligence.
Thanks to the rise of AI, the stock price of Kokusai Electric has soared.
According to the information, Kokusai Electric is a supplier focusing on providing film deposition equipment for the semiconductor industry and is an important partner of Taiwan Semiconductor.
Kokusai Electric stated earlier this week that it is considering measures to strengthen its capital, including issuing new shares and buying back stocks.