TOKYO/ HONG KONG :Japan’s Tokyo Metro and Rigaku on Friday kicked off the processes to launch a combined $3.13 billion in initial public offerings (IPOs) next month, according to term sheets, as the local capital markets emerge as a global hotspot for investors.
Tokyo Metro will aim to raise $2.25 billion – making it the largest IPO in Japan for six years – while Rigaku, the Carlyle Group-backed maker of X-ray testing tools, is targeting an IPO worth up to $888 million, the term sheets showed.
The two deals, if successful in raising the targeted amount, will more than double the value of IPOs launched in Japan so far in 2024, according to LSEG data.
There has been $1.5 billion worth of IPOs year to date in Japan, according to LSEG data, down nearly 55 per cent compared to the same time last year.
Total equity capital markets activity, on the other hand, has reached $28.2 billion so far in 2024, up 18.4 per cent due to a surge in follow-on capital raisings and convertible bond deals, the data showed.
In comparison, in the Asia-Pacific region, including Japan, ECM activity so far this year is down 24 per cent and IPO values off 59 per cent, according to the data, as the pace of global interest rate moves are uncertain and geopolitical risks remain high.
Japan’s stock market suffered a historic rout in early August, sparked by a surprise rate hike and fears of a U.S. recession, before regaining ground. The benchmark index is up around 13 per cent so far this year.
Tokyo Metro said on Friday it planned to list on the Tokyo Stock Exchange on Oct. 23, in the latest listing of a major Japanese railway operator.
Tokyo Metro’s indicative price of 1,100 yen per share would raise 319.55 billion yen ($2.25