In what is projected as the largest initial public offer in Japan this year, Suntory Holdings Ltd is projecting to net as much as 476 billion yen or US$4.7 billion. The shares to be listed are for the company's non-alcoholic beverage business.
The initial price for each of the IPO shares to be sold has been set at 3,800 per share. The said listing is scheduled on July 3 at the Tokyo Stock Exchange. The information was contained in a document filed by the Suntory Beverage and Food unit of the holdings firm with the Japanese Finance Ministry. According to Bloomberg calculations, the IPO would have a volume of 125.2 million shares including overallotments.
The move by the drinks manufacturer based out of Osaka, Japan comes after rivals Asahi Group and Kirin Holdings have gone overseas to seek growth markets because of the tepid local market and declining domestic demand. Suntory has even gone to the extent that it had set up a department within its listing unit specifically tasked to explore funding sources as well as study possible acquisitions and mergers.
The Suntory IPO is projected to be the largest in Japan since Japan Airlines offered 663 billion yen last September 2012, according to Bloomberg compiled data.
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