Reuters reports that Kioxia has canceled its planned initial public offering (IPO), which is slated for October. According to three Reuters sources familiar with the matter, this decision was driven by recent unfavorable market trends in the semiconductor sector, which have impacted its ability to meet valuation targets.
Bain Capital, Kioxia's principal investor, had hoped that the valuation of the 3D NAND maker would be 1.5 trillion yen ($10.39 billion). However, a significant drop in stock prices of its competitors, such as Micron, Samsung, and SK hynix, has made this goal challenging. These companies have seen their shares fall by roughly a third from recent highs, reflecting general challenges in the semiconductor industry and uncertainties with the memory market.
