A source told Bloomberg that Japan Display Inc would be conducting a JPY 200 billion or a USD 2 billion initial public offering. The source added that a government fund would be having control of the firm after the IPO. The fund, Innovation Network Corp of Japan, would continue to maintain ownership of more than a third of Japan Display's stake. The share of the government-backed fund was worth JPY 800 billion. The person spoke on the condition of anonymity as the plans were still private. The IPO was scheduled for March next year, with some underwriters already chosen to manage the offering.
Mito Securities Co Analyst Keita Wakabayashi told Bloomberg, "It's needed for Japan Display to raise funds for its R&D and production capacity expansion."
Japan Display is supplier of liquid crystal displays (LCD) for Apple Inc. It is the largest LCD maker for mobile phones. It was formed in 2012 after Sony, Toshiba and Hitachi sold their TV display units to Innovation Network Corp for failing to compete with Samsung.
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