Kioxia Targets $10 Billion ADR Listing Amidst Slowing AI Capital Expenditure
Japanese memory chipmaker Kioxia Holdings is exploring a significant fundraise through a U.S. American Depositary Receipt (ADR) listing, aiming to raise at least $10 billion. This move would broaden its investor base and position the company for inclusion in semiconductor-focused stock indexes.
The plans were first announced in May, with a target ADR issuance next year, and Kioxia has been discussing the matter with major investment banks, including Bank of America, Goldman Sachs Group, and JPMorgan Chase. The sources stated that an ADR listing could also position Kioxia for inclusion in semiconductor-focused stock indexes.
The trend of Asian technology and semiconductor companies broadening their investor base in the U.S. market has become increasingly pronounced. This is evident from South Korea's SK Hynix, which raised $26.5 billion through a U.S. ADR offering in July, setting a record for the largest new share sale by a foreign company.
However, Kioxia's performance has been lackluster in the second half of the year, with its stock plunging more than 54% from its peak in just over two months. Concerns over slowing AI capital expenditure at major cloud service providers and expectations of price declines amid a global memory industry production race have weighed on the stock.