BackTwo of this year’s biggest Japan IPOs set for stock-market debut
Shares of two of Japan’s largest initial public offerings this year jumped in Tokyo after both companies successfully priced shares at the top of the marketed range.
PremiumShares of two of Japan’s largest initial public offerings this year jumped in Tokyo after both companies successfully priced shares at the top of the marketed range.
Daiei Kankyo Co. Ltd., which offers waste recycle and treatment services, gained as much as 37% in early trading, to as high as 1,850 yen. The IPO raised about 43.3 billion yen ($315 million). Once bankrupt Japanese discount carrier Skymark Airlines Inc., traded as high as 1,280 yen, or 9.4% above the listing price. The company is returning to the exchange after raising 32.5 billion yen.
After a slew of deals were shelved early this year amid rising geopolitical woes and a surge in stocks volatility, firms in Japan are coming back to the market in full form. Sixteen companies have listed on local exchanges since the start of the fourth quarter, leveraging a typically strong December to lock in funding before the fiscal year wraps up in March.
Daiei Kankyo plans to use the proceeds to expand its waste treatment facilities. The fresh funds would also come in handy for Skymark at a time when borders are reopening. The airline, which went bankrupt in 2015, returns to Tokyo’s bourse after eight years.
In the past five years, new listings in Japan that raised at least $100 million have ended their first session at least 16% higher, according to data compiled by Bloomberg as of Dec. 13.
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This story has been published from a wire agency feed without modifications to the text.
