Dentsu’s IPO – previously predicted to be Japan’s biggest this year – has been dramatically scaled down in light of poor market conditions.
Scheduled for November 30, the offering on the Tokyo Stock Exchange is designed to net the Japanese agency giant up to Y10 billion ($82.5 million) – a fraction of the Y180bn ($1.5bn) expected last week [WAMN: 10-Oct-01].
Dentsu will offer 25,000 new shares, with existing investors such as Kyodo News, Jiji Press and Dai-Ichi Kangyo Bank selling a further 110,000.
The share price will be determined on November 20, expected to be in the range of Y380,000–Y400,000. Dentsu will use the money generated by the IPO to expand its overseas activities and develop its sports and entertainment content and its databases.
In addition, the agency group predicted on Tuesday that operating profits would sink 15.5% for the twelve months to March 2002, with sales staying flat. No explanation for the fall was forthcoming.
News source: Financial Times