Japan's Semiconductor IPO Eyes $3B Haul in 2023's Biggest Deal
JX Advanced Metals Corp., a subsidiary of energy giant Eneos Holdings, is set for a massive ¥460 billion (approx. $3 billion) initial public offering (IPO) on the Tokyo Stock Exchange. This IPO, if successful, would mark Japan's largest such deal since 2018.
JX Advanced Metals has set an indicative price of ¥862 per share, with final pricing scheduled for March 10th. The listing will take place on March 19th and is expected to surpass the blockbuster IPO of subway operator Tokyo Metro Co. last year.
This mega offering, representing the largest since SoftBank Corp.'s listing in December 2018, highlights the strength of Japan's IPO market, which outperformed the region in 2024. Its performance is closely watched by other companies considering going public and as a barometer of market sentiment.
According to Takamasa Ikeda of GCI Asset Management, a strong share performance by JX Advanced Metals post-listing could bolster investor sentiment, particularly among retail investors. Eneos Holdings plans to use the proceeds from the IPO for shareholder returns and decarbonization investments.
JX Advanced Metals holds a significant market share in sputtering target materials used in semiconductor circuitry, indicating the strong demand for chips in the rapidly growing AI sector.
The IPO is jointly coordinated by Daiwa Securities Group, JPMorgan Chase & Co., Morgan Stanley, and Mizuho Financial Group.
Japan's IPO market saw over ¥960 billion in offerings last year, with notable deals including Kioxia Holdings and Rigaku Holdings. This total was the highest since 2018, particularly driven by private equity-backed listings.