Line Corp shares are popular in the gray market ahead of this week’s trading debut, after the largest initial public offering (IPO) for a technology company so far this year.
Yesterday, investors were willing to buy shares for ￥3,800, 15 percent higher than its IPO price, Cantor Fitzgerald & Co said.
Offers to sell came in above ￥4,000, the brokerage said.
Singapore-based Churchill Capital Ltd sales trader Tom Leske said he was seeing bids at ￥3,900 versus offers at ￥4,200.
Line shares are to debut in a dual listing in the US today and in Tokyo tomorrow.
“We’ve seen several buyers immediately bid above the issue price,” said Howard Keum, Hong Kong-based managing director for Asia equity sales and trading at Cantor Fitzgerald. “Investors have been waiting for this IPO and have put in trying to get shares. We heard most got little or no allocations.”
Line, a Japanese mobile-messaging app provider backed by South Korea’s Naver Corp, raised US$1.3 billion after pricing its offering at the high end of an increased range. Line is selling 40.25 million shares for ￥3,300 apiece.
The Nikkei Shimbun yesterday reported that the IPO was almost 25 times oversubscribed.
Concerns over the timing of the listing, coming so soon after Britain’s Brexit vote roiled markets, are subsiding, as Japanese shares surge this week.
“Trying to get sellers in the gray is proving hard after the Japanese elections and the renewed Abenomics and stimulus hopes,” Leske said.
“With the market going up every day, there is no rush to sell,” he added.
From India to China to the US, automakers cannot make vehicles — not that no one wants any, but because a more than US$450 billion industry for semiconductors got blindsided. How did both sides end up here? Over the past two weeks, automakers across the world have bemoaned the shortage of chips. Germany’s Audi, owned by Volkswagen AG, would delay making some of its high-end vehicles because of what chief executive officer Markus Duesmann called a “massive” shortfall in an interview with the Financial Times. The firm has furloughed more than 10,000 workers and reined in production. That is a further blow
Answering to a reported request by Germany to help address a chip shortage in its auto industry, the Ministry of Economic Affairs (MOEA) yesterday said that it was in talks with domestic chip suppliers. Foreign media over the weekend reported that German Minister of Economic Affairs Peter Altmaier had sent a request to Taipei to ask Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to cooperate more closely with German automakers to provide microchips and sensors, to bridge a shortage that has emerged over the past few months. The MOEA said that it had not yet received the request and could therefore not elaborate
FOCUS ON FOUNDRIES: An analyst said that some investors would be disappointed because they were expecting a larger announcement of a partnership with TSMC Intel Corp’s incoming chief executive officer Pat Gelsinger on Thursday pledged to regain the company’s lead in chip manufacturing, countering growing calls from some investors to shed that part of its business. “I am confident that the majority of our 2023 products will be manufactured internally,” Gelsinger said. “At the same time, given the breadth of our portfolio, it’s likely that we will expand our use of external foundries for certain technologies and products.” He plans to provide more details after officially taking over the CEO role on Feb. 15, but Gelsinger was clear that Intel is sticking with its once mighty
AWARENESS NEEDED: The central bank urged lenders to know their customers before undertaking business for them and to seek funding in conventional ways The central bank yesterday said that it would take action against four foreign lenders for their involvement in helping companies trade in the deliverable forward market in contravention of foreign-exchange regulations. Some grain merchants newly based in Taiwan have since July 2019 been practicing questionable currency-trading activity, with the help of branches and subsidiaries of six foreign banks, the monetary policymaker told an unscheduled news conference. Affiliated firms as of July last year completed currency-related deals they referred to as trading that totaled US$11 billion, which was not in sync with their real business needs, the central bank said after wrapping up