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Kioxia withdraws IPO

by on28 September 2020

Not worth it while the US and China are at each other's throats

Flash memory maker Kioxia Holdings  shelved plans for what would have been Japan’s largest initial public offering (IPO) because everything is being messed up by the U.S-China tensions.

For those who came in late, Kioxia was once known as Toshiba Memory, had planned to list on the Tokyo Stock Exchange on 6 October offering up to $3.2 billion in shares. Shares in top shareholder Toshiba, which had planned to sell an eight percent stake, fell as much as 8.6 percent on the postponement news, before paring the losses to three percent

The postponement highlights how disputes over trade and technology between Washington and Beijing have cast a shadow over the global chip industry and affected companies across the supply chain.

 The memory chip market is bracing for the impact of tighter US restrictions on Huawei came into force on 15 September. The curbs ban global suppliers from selling chips made using US technology to the Chinese telecoms giant without a special licence, and Kioxia has warned they could trigger memory chip oversupply and lower prices.

Kioxia said the reason was fears of a second wave of the (COVID-19) pandemic as reasons for putting off the IPO.

Last modified on 28 September 2020
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