Kioxia may raise $10 billion in US listing, Bloomberg reports

• Kioxia is targeting at least $10 billion in capital through listing American depositary receipts (ADRs) in the U.S., potentially next year
• The company has engaged three major investment banks - Bank of America, Goldman Sachs, and JPMorgan - to advise on the offering
• The listing follows a trend of Asian semiconductor companies seeking to expand their U.S. investor base despite recent volatility in AI stocks

Summary

Japanese chipmaker Kioxia Holdings is considering raising at least $10 billion through a U.S. listing of American depositary receipts (ADRs), according to Bloomberg News sources. The potential offering could take place next year.

Key Details:

• Amount: Minimum $10 billion capital raise
• Structure: American depositary receipts (ADRs) listing in the U.S.
• Timeline: Expected in 2027
• Financial Advisors: Kioxia is in discussions with Bank of America, Goldman Sachs, and JPMorgan regarding the offering

Strategic Rationale:

The Tokyo-based semiconductor manufacturer aims to increase liquidity in U.S. markets and broaden its investor base through the ADR listing. The company has previously announced plans for this type of listing following the repurchase of billions of dollars worth of shares.

Market Context:

The move reflects a broader trend of Asian technology firms and semiconductor companies seeking to expand their U.S. investor base. This comes despite recent volatility in AI stocks following concerns raised by AI lab CEOs about the technology's development and safety considerations.

Important Notes:

Reuters could not independently verify the Bloomberg report. Kioxia and the three financial institutions did not immediately respond to requests for comment outside regular business hours.

The potential listing would represent a significant capital markets transaction in the semiconductor sector, providing Kioxia with enhanced access to U.S. capital markets and institutional investors.