Kioxia said to consider raising $10 billion in U.S. listing

Kioxia, the Japanese memory-storage company, is reportedly considering raising up to $10 billion by listing American depositary receipts (ADRs) on a U.S. stock exchange, according to people familiar with the situation. This move would potentially make Kioxia one of the biggest AI-related companies to tap into investor demand for listings, following other firms seeking to capitalize on the sector's strong interest.

The Tokyo-based company is currently in talks with major U.S. banks, including Bank of America, Goldman Sachs Group, and JPMorgan Chase, regarding an offering that could take place next year. Kioxia is looking to increase its liquidity in the U.S. market after repurchasing billions of dollars' worth of shares in Japan. Listing ADRs may also enable Kioxia to join a semiconductor-focused stock index.

The company's decision to pursue this listing is still in the preliminary stages, with details such as the size of the share sale and the bank lineup subject to change. Kioxia stated it is "preparing to list American Depositary Shares representing its common shares on a U.S. stock exchange to steadily and sustainably increase corporate value," but noted that the schedule and method of the listing have not yet been decided.

The company may decide not to proceed with the listing depending on circumstances. Notably, semiconductor companies and AI-related firms worldwide are actively seeking to capitalize on the surge in investor interest. SK Hynix, another South Korean memory chipmaker, recently raised $26.5 billion in its U.S. listing in July, setting a record for the largest first-time share sale by a foreign company.

Kioxia had previously planned to offer ADRs in the spring of 2027, but has not provided further details on the matter. With the AI sector facing escalating concerns about the pace of development and industry leaders attempting to rein in expansion to better understand potential risks, Kioxia's decision to pursue a U.S. listing comes at a critical time.

Despite Kioxa's efforts to bolster its shareholder base through a 3-for-1 stock split and a buyback of up to ¥800 billion ($5.2 billion), the company's Tokyo-listed shares have surged almost 400% this year, giving it a market value of around $183 billion.