Kioxia Holdings Corp., a Japanese memory maker, is reportedly considering raising $10 billion through a US listing planned for Spring 2027. This move aims to capitalize on the soaring demand for AI-related semiconductor stocks and a significant recovery in NAND profitability. The company has seen a substantial increase in its valuation this year, becoming Japan's most valuable company due to the AI-fueled boom in memory products.
Kioxia is preparing to offer US depositary shares and plans a stock split at home. This strategy mirrors rival SK Hynix Inc., which also sought access to the US financial market. The company recently posted record earnings, with an operating profit forecast of ¥1.3 trillion ($8.2 billion) for the quarter ending in June, far exceeding analyst estimates, and record earnings of ¥596.8 billion for the quarter ending in March.
The potential US listing could broaden Kioxia's access to global institutional investors and place it in the global AI spotlight. Sebastian Thomas, lead manager of a $14 billion AI-focused fund at Voya Investments, noted that a US listing could improve liquidity, a factor that has previously limited investment in Japanese companies. While Kioxia is not currently part of Voya's Global Artificial Intelligence fund, a US listing could change its investment calculus, similar to how SK Hynix's Nasdaq listing did.
The company's strong performance, including a 456% surge this year that leads gains on the Nikkei 225 index, underscores the favorable market conditions for its public offering. The timing also coincides with stronger data-center demand, further bolstering the outlook for memory chip manufacturers like Kioxia.
