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Dentsu Slates IPO for Late November

News, 10 October 2001

Dentsu is reportedly planning its initial public offering, Japan’s biggest this year, for the third week of November.

The agency giant will sell shares worth $1.5 billion in Europe and America, as well as in its native Japan.

Despite speculation it would cancel the flotation due to weakness in the markets – the Nikkei index recently tumbled to an 18-year nadir – Dentsu confirmed last week it would push ahead this year [WAMN: 02-Oct-01].

Its determination to brave a bear market is thought to reflect the desire of its two biggest shareholders – Kyodo News and Jiji Press – to sell their stakes (worth around $500 million and $125m–$167m respectively). Reports also suggest Dentsu needs cash to build a new head office in Tokyo, fund the establishment of an Asian media network and increase its 20% holding in US-based Bcom3 Group.

News source: AdAge Global