INCJ-backed Japan Display IPO prices at bottom of range

The company will now offer 353.9 million shares at JPY900 apiece, after initally setting a range of JPY900-1,100 ahead of it March 19 listing on the Tokyo Stock Exchange. The pricing puts the offering's total value at JPY318.5 billion ($3.08 billion), not including the over-allotment option.

The listing will provide a partial exit for the government-backed Innovation Network Corporation of Japan (INCJ) which formed the company in 2012 after acquiring and then merging the struggling display units of Hitachi, Sony Corp and Toshiba Corp.

INCJ will reduce ts stake from 86.7% to a little over one-third, roughly doubling its money on its initial investment of JPY200 billion.

The company has cut the portion being offered to overseas investors from 45% to 37.5% after bankers noted concerns over the declining cost of screens and the firm's dependence on Apple iPhones and iPads, which make up 30% of its business.

According a regulatory filing, Japan Display will invest JPY126 billion of the proceeds from the sale of new shares in manufacturing facilities.

Despite investor concern, Japan Display forecasts that its operating profit will leap to JPY30.4 million is for the current financial year, up from JPY1.8 billion the year before. This is mainly bue to the establishment of its Mobara factory in Tokyo.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Technology
• Exits
• Japan
• Exit
• IPO
• Innovation Network Corp. of Japan (INCJ)
• Technology