Kioxia, formerly known as Toshiba Memory, has reportedly filed for an Initial Public Offering (IPO) on the Tokyo Stock Exchange, with an expected listing in October. The company anticipates a market valuation of over 15 trillion yen, which would make it the largest IPO in Japan for the year 2024.

The memory market has been showing signs of recovery since the third quarter of last year, with the reduction in production by original equipment manufacturers (OEMs) and a shift in market strategy focusing on profitability rather than market share. This has led to an improvement in the supply-demand balance, resulting in a rebound in storage prices in the second half of 2023 and a return to an upward market cycle.

Kioxia's financial reports have been reflecting this positive trend, with increasing revenue and profits. The company's FY24 Q1 financial statements revealed that the average selling price of NAND Flash has risen due to improved supply-demand balance, and the recovery in demand has driven an increase in product shipments. Additionally, the depreciation of the Japanese yen has contributed to Kioxia's revenue reaching 428.5 billion yen (about $2.75 billion), a 33% increase from the previous quarter, setting a new record for quarterly revenue. Operating profit stood at 125.9 billion yen (about $810 million), a 187% increase, and net profit reached 69.8 billion yen (about $450 million), a 578% increase from the previous quarter.

These robust financial results have bolstered Kioxia's confidence as it moves forward with its IPO plans. The company's successful financial performance and strategic market positioning are expected to attract investors and contribute to a successful listing on the Tokyo Stock Exchange in October.