Key facts
- Kioxia Holdings is considering a U.S. listing of American depositary receipts to raise at least $10 billion.
- The company is in discussions with Bank of America, Goldman Sachs, and JPMorgan regarding the potential offering.
- The listing is anticipated to occur next year.
- Kioxia aims to increase its U.S. liquidity and potentially join a semiconductor-focused stock index.
- Kioxia announced plans in May to list ADRs to broaden its investor base.
Japanese chipmaker Kioxia Holdings is exploring the possibility of raising at least $10 billion through a listing of American depositary receipts (ADRs) in the US, according to a Bloomberg News report citing individuals familiar with the matter. The company is reportedly engaged in discussions with financial institutions, including Bank of America, Goldman Sachs, and JPMorgan, concerning a potential offering that could materialize next year.
Kioxia's move to list ADRs is aimed at enhancing its liquidity in the US market, following significant share repurchases in Japan. Such a listing could also facilitate Kioxia's inclusion in a stock index focused on semiconductor companies. The company had previously indicated in May its preparations for an ADR listing to expand its investor reach.
Asian technology and semiconductor firms are increasingly seeking to broaden their investor base in the United States.