Japanese agency giant Dentsu has set a price of Y420,000 ($3,413) for its initial public offering on the Tokyo Stock Exchange, slated for November 30.

At the top end of expectations, the price values Dentsu at Y584.1 billion ($4.76bn). Some 135,000 shares will be floated – 110,000 from present stakeholders such as Jiji Press and Kyodo News plus a further 25,000 new shares – leaving 1.39 million outstanding.

Despite the weak state of the markets at present, not to mention the ad industry, the offering is expected to catch the eye of institutional investors, eager to sell later when conditions pick up.

The IPO is predicted to net Y56.7bn, with Y46.2bn going to existing shareholders. Dentsu itself will pick up around Y10.5bn, though this is a fraction of the Y180bn expected before the IPO was drastically scaled back last month [WAMN: 17-Oct-01]. The cash will, it is thought, be used to fuel international expansion.

News source: Financial Times