Like SK hynix... Japan's Kioxia Considering U.S. ADR Listing, "Details Under Discussion"
"Listing Initiative May Be Halted Depending on Developments"
Japanese semiconductor company Kioxia has announced that it is considering an American Depository Receipt (ADR) listing on a US stock exchange, similar to what SK hynix has done in South Korea. While specific details have yet to be disclosed, foreign media outlets are reporting that Kioxia is aiming to raise approximately $10 billion (about KRW 13.56 trillion) through an ADR listing.
On the 15th, Kioxia stated on its official website, "We are preparing for an ADR listing on a US stock exchange to stably and continuously enhance our corporate value," adding, "We have not yet decided on specific details such as the listing market, timing, or method." The company continued, "Depending on the circumstances during the preparation process, we may decide to suspend the listing process," and further stated, "If any material information requiring disclosure arises, we will promptly make an announcement."
Previously, some foreign news outlets reported that Kioxia is considering raising at least $10 billion through a US ADR listing. On this day, Bloomberg News, citing sources, reported, "Kioxia has continued discussions with investment banks such as Bank of America (BofA), Goldman Sachs, and JPMorgan Chase with the aim of listing as early as next year," and noted, "The company is considering raising $10 billion and is also seeking inclusion in the Nasdaq's semiconductor-related indices." Kioxia had previously announced its plan to issue ADRs around April to June 2027, but has yet to make public any further details about the timing and scale of the fundraising.
Bloomberg further commented, "This move joins a wave of other artificial intelligence (AI)-related companies seeking to capitalize on strong investor demand." The report pointed out, "SK hynix set a new record for the largest-ever initial public offering (IPO) by a foreign company in the United States, raising $26.5 billion through an ADR issuance in July."
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However, there are concerns that Kioxia's performance could weaken in the second half of the year compared to the first half, and that the so-called "pace adjustment theory" currently circulating in the AI industry could have a negative impact. In fact, Kioxia's share price has plummeted by more than 54% from its previous high in the past two months. Worries about a slowdown in AI facility investment and concerns over a price decline due to the fierce production expansion competition among global memory companies are also acting as negative factors.
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