Shares of Trial Holdings Inc. surged by 29% in their first day of trading on the Tokyo market after the company's initial public offering (IPO) raised a staggering ¥38.85 billion ($258 million), marking it as Japan's largest IPO this year.
The stock closed at ¥2,200 on Thursday, with approximately 22.85 million shares sold at ¥1,700 each, which was the top end of the targeted price range. This debut is the most significant since Kokusai Electric Corp.'s $844 million offering in October.
Trial Holdings, known for its discount-store chain operations, opted for listing on Tokyo's Growth market after previously shelving an IPO plan a year ago. The move aligns with investors' growing interest in Japanese equities due to improving shareholder returns and corporate profits. Moreover, the Bank of Japan's recent decision to end its negative rates regime and maintain accommodative financial conditions has further bolstered market sentiment.
Historical data compiled by Bloomberg reveals that companies listing in Japan post-IPOs with fundraising exceeding $100 million have experienced an 18% surge on their inaugural trading day.
With a network of over 280 stores offering discounted prices on a wide range of products from fresh food and ready-made meals to housewares and appliances, Trial Holdings plans to utilize the IPO proceeds for new store openings, renovations, logistics centers expansion, central kitchen enhancements, and other operational activities, as outlined in the offering's terms.
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