Toshiba’s chip IPO could short-circuit

HONG KONG: The debut of Toshiba’s chip unit may short-circuit in volatile markets. Two years after the Japanese conglomerate’s crown jewel was sold to a group led by U.S. buyout firm Bain Capital, the rebranded Kioxia will go public in Tokyo at a valuation of $20 billion.

Financial desperation forced the scandal-hit Toshiba to offload its prized flash-memory division in 2018. The sale was chaotic, but Bain managed to pull together a consortium including Apple and South Korea’s SK Hynix in a deal worth some $19 billion. Political backlash against foreign control of local technology meant Toshiba was able to retain a roughly 40% voting right.