Starbucks Coffee Japan Ltd is set for a solid debut in one of the most keenly awaited listings in Tokyo this year, as individual investors gulp down the espresso maker's stylish image and potential for growth.
The Japanese unit of US coffee giant Starbucks Corp has set a price of ?64,000 (US$534) per share for today's listing on the NASDAQ Japan bourse, which will make it the first unit of the Seattle-based firm to go public.
The sticker-tag came in at the high end of the tentative price range of ?57,000 to ?67,000. It will issue ?220,000 new shares and ?60,000 from current shareholders.
"The [one share minimum] trading unit and subsequent low entry price make it a fairly simple sell to retail investors. Its business model is easy to understand and its growth prospects look good," said Hideki Kamiya, senior fund manager at Asahi Tokyo Investment Trust Management.
"I'm not buying, but it should get off to a firm start," said Kamiya, whose firm oversees ?347.94 billion of investment trusts.
Starbucks Japan has earmarked the 14 billion yen in funds generated from the offering to help fuel its planned expansion to 500 stores by 2004.
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