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Chipmaker Kioxia Rises 10% in Tokyo Debut After Jumbo IPO

Business Today ·  Dec 18 00:10
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Memory-chip maker Kioxia Holdings Corp climbed 10% in its debut on the Tokyo Stock Exchange on Dec 18, underscoring strong investor demand for new shares in Japan.

After dropping at the start of the day, the company extended gains in afternoon trading, rising far above its IPO price and valuing the firm at about ¥863 billion. That's still a fraction of the US$18 billion that a Bain Capital-led consortium forked over in 2018 to acquire it. Kioxia's shares are trading at ¥1,601 compared to its IPO price of ¥1,455.

The world's No 3 NAND maker is listing after years of complex and wide-ranging negotiations that involved Bain Capital, SK Inc, Western Digital Corp and the Japanese government. The company's IPO price was at the middle of the range it proposed before the offering. Most deals in Japan this year that gave a price range ended up debuting above the upper limit, Japan Exchange Group Inc data show.

IPOs in Japan have raised about ¥938 billion this year, the largest amount since 2018.

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