Kioxia Holdings called off plans to launch one of the biggest initial public offerings (IPOs) of the year. The Japanese chip previously planned to go public on the Tokyo Stock Exchange on October 6.
Bain Capital was leading Kioxia’s IPO that could bring the Japanese chipmaker’s valuation to $16 billion
Kioxia’s decision comes after revealing that its business has been adversely impacted by the United States’ recent export restrictions on Chinese owned Huawei Technologies.
Kioxia points to stock market volatility and COVID-19 pandemic as reasons
In a statement on Monday, the Japanese chipmaker said it is suspending its IPO indefinitely and will continue to evaluate the appropriate timing for its market debut.
Although the statement didn’t mention Huawei directly, it’s safe to assume that the delay can be attributed to an ongoing tech war between the Trump administration and Beijing. Kioxia attributed its decision to volatility within the stock market and the ongoing COVID-19 pandemic.
“While we received significant interest from many investors, the lead underwriters and Kioxia do not believe it is in the best interest of current or prospective shareholders to proceed with the IPO at this time of continued market volatility and ongoing concerns about a second wave of the pandemic”, said Nobuo Hayasaka, President and Chief Executive Officer (CEO) of Kioxia.
