Kioxia Holdings Corp. is considering raising at least $10 billion through a listing of American depositary receipts (ADRs) in the US, potentially joining a growing number of artificial intelligence-related companies seeking to capitalize on strong investor demand, Bloomberg reported, citing people familiar with the matter.
The Japanese memory-chip maker has been in discussions with lenders including Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. over a potential offering that could take place next year, according to the people, who asked not to be identified because the matter is private.
Kioxia is seeking to improve the liquidity of its shares in the US following its repurchase of billions of dollars’ worth of stock in Japan, the people said. A US ADR offering could also enable the company to qualify for inclusion in a semiconductor-focused stock index, they added.
The discussions remain preliminary, and the size of the offering and the participating banks could change, according to the people.
Representatives for Kioxia, Goldman Sachs and JPMorgan declined to comment. Bank of America did not respond to a request for comment.
Kioxia Targets US Investor Demand
Semiconductor manufacturers and other AI-related companies around the world are seeking to take advantage of strong investor interest in the sector. South Korean memory-chip maker SK Hynix Inc. raised $26.5 billion through a US listing in July, setting a record for the largest initial share sale by a foreign company.
Kioxia, based in Tokyo and a major supplier of NAND flash memory, has already announced plans to offer US depositary shares in spring 2027. The company has not disclosed further details about the proposed transaction.
AI Concerns Add Market Uncertainty
Kioxia is weighing the potential offering as concerns over a possible slowdown in AI development have triggered volatility in global stock markets. Nasdaq 100 futures fell 1.8%, while an exchange-traded fund tracking major semiconductor stocks declined 4.7% in early trading after leading US AI companies discussed measures to introduce safeguards and evaluate the safety and impact of advanced AI models.
The company issued a cautious earnings outlook in July after reporting results that fell short of expectations. It also announced a 3-for-1 stock split and a share buyback program of up to ¥800 billion ($5.2 billion), aimed at broadening its shareholder base and reducing stock-price volatility.
Kioxia’s shares listed in Tokyo have surged nearly 400% this year, giving the company a market capitalization of approximately $180 billion.