(Seoul=Yonhap Infomax) Si Yoon Yoon – Shares of Kioxia Holdings (TSE:285A), the Japanese memory chipmaker, tumbled more than 12% following news that U.S. private equity firm Bain Capital is divesting part of its stake.


As of 09:55 a.m. in Tokyo, Kioxia shares were trading at 8,596 yen, down 12.76% from the previous session, according to the Tokyo Stock Exchange.


The sharp decline came after reports that a Bain Capital-backed entity plans to sell a significant portion of its holdings in Kioxia.


According to documents released by lead underwriter Goldman Sachs Securities, BCPE Pangaea—a special purpose company established by Bain Capital for the acquisition—intends to sell 36 million Kioxia shares to overseas investors.


The transaction is estimated at approximately 355 billion yen ($2.3 billion), based on the previous closing price of 9,853 yen per share.


The news has heightened concerns over lofty valuations among global artificial intelligence (AI) related companies.


Kioxia shares had previously surged to a record high in November on expectations of soaring AI-driven demand. While the stock has retreated from its peak, it remains several times above its IPO price of 1,455 yen.


This month, Kioxia shares have come under additional pressure after quarterly earnings fell short of market expectations.


Source: Bain Capital website


syyoon@yna.co.kr

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