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Kioxia Stock Surges 10% as Bain Capital Exits Its Stake
Shares of Japanese chipmaker Kioxia experienced a significant surge on Thursday, climbing 10% to ¥79,090. The primary catalyst for the rally was an announcement from private equity firm Bain Capital that it has completely disposed of its stake in the company, removing what investors considered a major supply overhang.
Bain Capital was the leader of an $18 billion consortium that acquired Kioxia, then known as Toshiba Memory, in 2018. A managing partner at the firm confirmed in a Bloomberg interview that it has now fully liquidated its position in the chipmaker.
Further boosting investor sentiment is the anticipation of substantial passive fund buying. Kioxia is expected to be a major beneficiary of an upcoming TOPIX index rebalancing, with some estimates suggesting potential inflows of around JPY 3 trillion, a factor that could sustain buying pressure.
AdThe surge also follows a recent downturn that saw the stock's price fall to near ¥67,190. This dip was seen by some analysts as an attractive entry point, with firms including Goldman Sachs and UBS reportedly maintaining bullish outlooks. The rally occurred within a positive market environment, as Japan's broader Nikkei 225 index also gained over 1% during the session.