TOKYO (Reuters) – Chip equipment maker Kokusai Electric has successfully raised $724.4 million through its initial public offering (IPO) in Japan, marking the country’s largest IPO in the past five years. The IPO was priced at the top end of a scaled-back marketing range.
Kokusai, which is owned by KKR Group, set its IPO at 1,840 yen per share, according to a filing on Monday. This valuation puts the company at 423.9 billion yen ($2.84 billion).
The decision to reduce the upper end of the price range from 1,890 yen to 1,840 yen was likely influenced by the lackluster performance of chip designer Arm’s shares since its listing last month, as reported by a source familiar with the matter.
The shares are slated to be listed on the Tokyo Stock Exchange’s Prime Market on October 25.
Some of Kokusai’s biggest customers include Samsung Electronics, TSMC, and Micron Technology. Combined, these customers account for over 40% of the company’s total revenue.
The conversion rate for the US dollar to yen is currently at $1 = 149.5000 yen.
This IPO marks a significant milestone for Kokusai Electric and highlights the strong investor interest in chip equipment manufacturing companies. As the demand for semiconductor chips continues to rise, Kokusai is well-positioned to capitalize on this growing market.
The successful IPO will provide Kokusai with the necessary funds to expand its operations and invest in research and development, ensuring the company remains at the forefront of technological advancements in the industry.
With the shares set to be listed on the Tokyo Stock Exchange, investors are eager to see how Kokusai Electric performs in the coming months. The IPO’s success further demonstrates Japan’s robust capital market and its ability to attract investment.
Reported by Mariko Katsumura and Sam Nussey; Edited by Kim Coghill
