HONG KONG (Reuters Breakingviews) – The reason for Kioxia’s decision to pull its $3.2 billion initial public offering on the eve of pricing depends on who you ask. The world’s second largest maker of flash memory chips said it was down to market volatility and pandemic uncertainties. Analysts highlighted the punchy valuation sought. Others pointed to the problems of its sales to Huawei, battered by U.S.-China trade tensions. Whatever the reason, the biggest loser is Japan’s Toshiba, which needed a pick-me-up.
The conglomerate holds 40% of the shares in Kioxia, known as Toshiba Memory until its parent was forced to spin it out in a 2018 scramble for survival.