Kioxia, the Japanese memory-chip maker formerly known as Toshiba Memory, has postponed its initial public offering, originally planned for 6 October, citing continued market volatility and ongoing concerns about a second second wave of the coronavirus pandemic. The company said it will “continue to evaluate the appropriate timing for its offering” and that it is not “in a rush” but reports said the delay may be indefinite. The Wall Street Journal reported that the decision comes amid US export restrictions on Huawei, affecting Kioxia’s business.
Estimates had put the company’s value at USD 20 billion. The WSJ now put it at around USD 16 billion, adding that the company reduced its planned listing price because of the situation with Huawei. The Japanese maker of flash-memory chips has said its sales to Huawei make up a considerable part of overall revenue and will likely be subject to US export restrictions.
The US Commerce Department put Huawei on its so-called Entity List this summer, imposing license requirements for products set for export. In addition to curbing business with Huawei, the US restrictions may lead to excess supply and price drops for flash-memory products, Kioxia has said.
