Kioxia's Tokyo debut sees a slight increase in share price following an $800 million IPO.

• The company raised $800 million through an IPO, utilizing an overallotment option.
• The midpoint of the price range for shares was 1,455 yen.
• In 2018, Toshiba Memory, now known as Kioxia, was sold to a Bain-led consortium for $18 billion.

Kioxia's shares increased by 2.69% on their first day of trading in Tokyo after the company raised over 120 billion yen ($800 million) in its initial public offering.

The stock was trading at 1,484 yen at 9:14 a.m. Tokyo time, slightly above the offer price of 1,455 yen per share, which was the midpoint of its IPO price range of 1,390-1,520 yen.

According to a filing in Japanese on Monday, Kioxia initially offered 71.8 million shares but later exercised an overallotment option to offer an additional 10.79 million shares.

Kioxia issued new shares and sold shares from major shareholders Bain Capital and Toshiba during its IPO.

On Wednesday, Reuters reported that Kioxia had requested its major shareholders to sell additional shares in order to meet the listing requirements on the Tokyo Stock Exchange's Prime market.

The ratio of shares in the market is below the Prime market's requirements of 35%, as Kioxia disclosed.

In 2018, Toshiba Memory, now known as Kioxia, was sold to a Bain-led consortium for $18 billion.

Third time's the charm

Kioxia has previously attempted to list on public markets, but postponed plans in 2020 due to market volatility and concerns about a second wave of the pandemic.

In September, Reuters reported that Bain abandoned its IPO plan in October because of a sell-off in Japanese stocks in August, which made it difficult to achieve the 1.5-trillion-yen valuation it had been aiming for.