Tokyo equity offerings surge as Japan Inc begins to shift towards capital efficiency
equity offerings have more than quadrupled in value this year, with investors encouraged by a surge in the Nikkei stock index to a 33-year high and signs that Japanese firms have begun to manage their capital more efficiently.
A tough 2022 for equity capital markets globally resulted in a backlog of fundraising deals. Japan has also benefitted from far lower interest rates than other countries, billionaire Warren Buffett's lifting of stakes in Japanese firms and a re-allocation of funds away from China amid tensions between Beijing and Washington.
Proceeds from initial public offerings and secondary share and convertible bond issues soared 343% to $23.7 billion in the first nine months of the year, LSEG data showed.
The number of deals climbed by a third.
In contrast, equivalent data for China shows a 29% decline in proceeds, albeit to a much bigger $104.3 billion, on an 11% drop in the number of deals.
There were 73 Japan IPOs during the nine months that raised a combined $3.3 billion, nearly four times as much as the same period a year earlier. They included a $625 million offering from Rakuten Bank.
Chip tool maker Kokusai Electric's planned 111 billion yen ($740 million) offering — currently in train for an Oct.
