Kioxia plans $10 billion US ADR offering to boost liquidity and index inclusion
Japanese chipmaker Kioxia Holdings is weighing a $10 billion American depositary receipt issuance, aiming to raise cash and join a US semiconductor index.
Kioxia Holdings, a Tokyo-based semiconductor producer, is exploring a US-listed American depositary receipt offering that could raise a minimum of $10 billion, according to sources familiar with the plan. The company has been consulting lenders including Bank of America, Goldman Sachs and JPMorgan about structuring the deal, which may be executed in the coming year. After repurchasing billions of yen worth of its own shares domestically, Kioxia seeks greater liquidity in the US market.
The ADR issuance would also qualify the firm for inclusion in a semiconductor-focused US index, potentially attracting a wider pool of investors. This strategy comes as Asian tech firms look to expand US investor exposure while AI stocks have recently retreated following safety concerns voiced by leading AI lab CEOs. Kioxia previously announced in May its intention to list ADRs to broaden its shareholder base.
Why it matters
The offering could bring significant US capital to a major Japanese chipmaker and broaden its investor reach.
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