Kokusai Electric, a chip equipment manufacturer, raised $724.4 million in Japan’s largest IPO by placing its shares at the top of their marketing range.
According to a filing on Monday, Kokusai, which is owned by the American private equity firm KKR, set its IPO price at 1,840 yen per share, valuing the business at 423.9 billion yen ($2.8 billion).
Two persons with direct knowledge of the situation who wished to remain anonymous and were not authorised to speak to the media indicated that the portion of the IPO that was open to foreign investors was more than ten times oversubscribed.
The transaction would raise about $833 million if a domestic investor’s overall investment option were exercised.
A slump in the market for electronics like smartphones and personal computers has muted excitement about artificial intelligence, which is why Kokusai’s listing comes at a time when there is discussion about the strength of demand in the chip business.
Invoking feedback from institutional investors and the status of the stock market, Kokusai, a manufacturer of machines that deposit thin films on silicon wafers, last week reduced its indicative pricing from an earlier number of 1,890 yen per share to a range of 1,830–1,840 yen.
According to a source with knowledge of the situation, the decision was made in part as a result of chip creator Arm’s underwhelming share price performance since its debut last month.
KKR’s interest will decrease from 73.2% to 47.7% as a result of its partial withdrawal, barring the possibility of an overallotment.
The shares are slated to float on the Tokyobourse Prime Market on October 25. Samsung Electronics, TSMC, and Micron Technology are Kokusai’s three biggest clients, together accounting for more than 40% of its revenue.
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