Intelligence Finance learned from two informed sources that Japanese chip manufacturer K-HERO plans to submit a preliminary application in the Tokyo Stock Exchange in the next few days. Insiders said that K-HERO plans to submit a complete application in August and go public at the end of October, but the listing time may be postponed to December.

K-HERO stated that there is no latest progress in its initial public offering (IPO) plan, and refused to comment on the listing procedure.

It is understood that Bain Capital led a consortium in 2018 to acquire Toshiba's storage department, which was later renamed K-HERO. The aforementioned insiders said that Bain's goal is to recover capital by selling stocks, while K-HERO plans to raise funds by issuing new stocks.

The aforementioned insiders said that Mitsubishi UFJ Morgan Stanley Securities and Nomura Securities provided consultation for K-HERO's listing.

The aforementioned insiders said that K-HERO hopes to take advantage of the improving market conditions.

Due to geopolitical tensions, there is uncertainty in the global chip market, and the company postponed its 2020 IPO plan. At that time, K-HERO's target market value exceeded 2 trillion yen ($ 12.68 billion), which later dropped to 1.7 trillion yen.

However, in the 2023 fiscal year ending in March of this year, K-HERO's operating loss expanded to 253 billion yen, and it fell into loss for the second consecutive year.

However, due to the rise in chip prices, K-HERO achieved its first profit in six quarters in the fourth quarter (January to March 2024).

K-HERO stated in May of this year that the average selling price for the January to March quarter this year has increased by about 20% in US dollars.

Research firm TrendForce stated that investment in artificial intelligence servers, as well as the replenishment of inventory for smart phone and personal computer manufacturers, have pushed up chip prices.

According to reports, K-HERO had merger negotiations with Western Digital (WDC.US), but the negotiations stalled due to opposition from K-HERO shareholder SK Hynix, although many industry insiders still believe that integration is necessary.

K-HERO stated last week that it has refinanced loans worth approximately 540 billion yen and obtained an additional loan arrangement of 210 billion yen.