TOKYO – Two of the three largest new share sales in Japan this year are set to debut in Tokyo on Wednesday after both companies successfully priced shares at the top of the marketed range.
Daiei Kankyo, which offers waste recycle and treatment services, raised about 43.3 billion yen (S$424 million) through its initial public offering, according to Bloomberg’s estimates. Once bankrupt Japanese discount carrier Skymark Airlines, on the other hand, 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, companies 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 US$100 million (S$135 million) have ended their first session at least 16 per cent higher, according to data compiled by Bloomberg. BLOOMBERG