The Japanese chip maker expects growth in the flash-memory market, driven by demand for AI applications and data centers.

Shares of Kioxia soared 14% in their market debut on Wednesday, valuing the Bain-backed chipmaker at more than 890 billion yen ($5.80 billion) and highlighting strong investor demand for the third biggest IPO in Japan this year.

Japanese memory-chip maker Kioxia Holdings Corp. will list on Tokyo Stock Exchange’s Prime Market on Wednesday, testing investors’ demand after its initial public offering failed to price at the upper end of the firm’s proposed range.