The market value of Kioxia’s exclusive products is set at $5 billion, the Japanese chipmaker will receive approval for listing, sources say

Miho Uranaka and Sam Nassi

TOKYO (Reuters) – Bain-backed Kioxia will have a market value of about 750 billion yen ($4.84 billion) based on the indicative price of its initial public offering, with the chipmaker gaining approval for a Tokyo Exchange listing on Friday two the source said.

The market value, reported for the first time by Reuters, could change depending on the final IPO price.

Kioxia, Bain and the Tokyo Stock Exchange declined to comment. The sources declined to be named because the information is not public.

Bain Capital abandoned plans to IPO Kioxia in October after investors pushed the buyout company to nearly halve the 1.5 trillion yen valuation it had sought, Reuters reported.

Kioxia is the first to operate under new rules in Japan that allow companies to apply for registration and communicate with investors before receiving listing approval.

Kioxia, formerly Toshiba Memory, is planning an IPO in December, Reuters reports. Bain shelved its previous plan to IPO Kioxia four years ago.

The publication will provide Kioxia with fundraising capabilities in a capital-intensive industry, but will increase control over the company’s financial performance.

A Bain-led consortium acquired the chipmaker from controversial conglomerate Toshiba for 2 trillion yen in 2018.

Shareholders including Bain will sell shares in the IPO, the people said.

Morgan Stanley, Nomura and BofA Securities are joint global coordinators for the IPO.

($1 = 155.0400 yen)

(Reporting by Miho Uranaka and Sam Nussey; Additional reporting by Noriyuki Hirata; Editing by Sonali Paul)