Bain-backed Kioxia sets price range for December IPO

Bain Capital-backed chipmaker Kioxia has set a tentative price range of 1,390 to 1,520 yen ($9.22 to $10.09) per share for its initial public offering, a filing showed on Monday.

The price range, which was first reported by Reuters, compares with an indicative price of 1,390 yen set in November and gives the Japanese chipmaker a market value of around 749 billion yen to 819 billion yen.

Bain scrapped plans for an IPO of Kioxia in October after investors sought a market value of around 800 billion yen compared to its target of 1.5 trillion yen, Reuters has reported.

The buyout firm postponed a previous IPO plan for Kioxia four years ago.

Bain’s efforts to list the chipmaker are being closely watched as a test case for buyout firms in Japan, where more companies are selling non-core assets or going private.

Going public would offer Kioxia fundraising options in a capital intensive industry but increase scrutiny on the company’s financials.

A Bain-led consortium acquired the chipmaker from scandal-hit conglomerate Toshiba for 2 trillion yen in 2018.

Kioxia is due to debut on the Tokyo Stock Exchange on Dec. 18.