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Bain sought $10 billion valuation for Japan's Kioxia, investors only wanted to pay half

Economic Times · 1m

- Investors pressured Bain Capital to reduce the valuation sought for Japan's Kioxia in an IPO, resulting in the scrapping of the planned October listing. - Global investors were seeking a market value of approximately 800 billion yen for Kioxia, compared to Bain's target of 1.5 trillion yen. - Investors' concerns over the strength of the memory chip market contributed to the valuation gap. - Kioxia's IPO this year seems unlikely due to market conditions, but it may be possible by the end of the financial year. - Memory chipmakers, including Kioxia, have faced challenges due to lackluster demand for smartphones and PCs and increased competition from South Korean and U.S. rivals. - Kioxia's focus on NAND flash memory, while SK Hynix also produces DRAM chips, has impacted its market standing.