After raising almost US$4 billion in Asia's biggest public offering this year, Suntory Beverage & Food Ltd rose as much as 2.9% in its Tokyo trading debut.
Although investors deemed the IPO to be pricey, the soft drink arm of Osaka based Suntory Holdings traded above benchmark Topix index with gains of 0.1%. Suntory traded at Y3190 as of 9:43 am local time, higher than its offered price of Y3100.
Suntory is the seller of Orangina soda. It started after the Topix yesterday capped the biggest four day rally since April as the yen weakened. The soda manufacturer priced its offering near the low end of the projected range last week.
The company expects to receive a net income of Y35 billion this year. It planned to double its sale to Y2 trillion by 2020. The net proceeds from the initial public offering will be used by Suntory as it furthers its expansion overseas.
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