Kioxia is considering issuing American Depositary Receipts (ADRs) in the United States to raise at least $10 billion, with a potential listing as early as next year. The company has already entered into discussions with Bank of America, Goldman Sachs, JPMorgan, and other institutions. Driven by demand for AI storage, Kioxia’s shares listed in Japan have surged more than 410% year-to-date, pushing its market capitalization to approximately $180 billion. However, recent financial performance has fallen short of expectations, and the company still faces challenges regarding valuation and market volatility in its U.S. fundraising efforts.
Global leader in NAND flash memory $Kioxia Holdings (285A.JP)$ is considering raising at least $10 billion by issuing American Depositary Receipts (ADRs) in the United States, with a possible listing as early as next year. If the plan proceeds, Kioxia will become another semiconductor company seeking financing and liquidity through the U.S. capital markets in recent times.
On September 14, Bloomberg cited sources familiar with the matter stating that Kioxia has begun discussions with institutions such as Bank of America, Goldman Sachs, and JPMorgan regarding issuance arrangements. These discussions remain in the early stages, and both the fundraising scale and the underwriting syndicate are subject to adjustment. This issuance could also help Kioxia gain inclusion in semiconductor-focused stock indices.
Kioxia had previously announced plans to issue ADRs in the spring of 2027 but had not disclosed further details. If the current process proceeds smoothly, the listing date may be earlier than originally scheduled. Earlier this year, the company implemented a stock split in the Japanese market and launched a share buyback program of up to JPY 800 billion, having already repurchased billions of dollars worth of shares to expand its shareholder base and increase float size.
Surging demand for AI storage drives Kioxia’s Japanese-listed shares up more than fourfold year-to-date
Continued investment in AI infrastructure is driving up demand for high-performance storage, prompting semiconductor companies to accelerate their entry into U.S. capital markets. In July this year, South Korean memory chip giant SK Hynix completed its U.S. listing, raising $26.5 billion and setting a record for the largest initial public offering by a foreign company in the United States.
Kioxia’s Tokyo-listed shares have risen more than 410% cumulatively since the beginning of the year, lifting the company’s market capitalization to approximately $180 billion. However, the financial results released in July fell below market expectations, and the company provided a relatively cautious earnings outlook, indicating that fundamentals remain under some pressure.
Meanwhile, U.S. stocks have recently experienced volatility due to factors such as the development prospects of AI and security risks associated with cutting-edge models. For Kioxia, which is planning a U.S. listing, choosing the right timing for issuance and striking a balance between high valuations and market volatility will be key to the successful advancement of its listing plans.
Editor/rice