Japanese agency giant Dentsu is to push ahead with its planned $1.5 billion initial public offering despite the current market turmoil.
Several media reports in the last month – both before and after the attacks on the US – suggested the group would delay the IPO. Responding to the latest round of speculation on Monday, Dentsu confirmed it will go ahead with its initial plan of listing on the Tokyo Stock Exchange before the end of the year [WAMN: 27-Feb-01], although no specific date was stated.
In what is expected to be the biggest Japanese IPO this year (after other flotations were delayed), Dentsu will reportedly sell up to Y180 billion ($1.5bn) of stock in the US, Europe and its native Japan.
The ad group’s persistence in pushing through the IPO is thought to be due to the eagerness of its two major shareholders, Kyodo News and Jiji Press, to offload shares and generate capital.
News source: Financial Times