JX Advanced Metals Shares Rise in Trading Debut After $3 Billion IPO
Eneos said the metals subsidiary will be able to accelerate capital investments as well as research and development
JX Advanced Metals’ shares rose sharply in their trading debut after parent Eneos Holdings 5020 1.18%increase; green up pointing triangle spun off its metals subsidiary through an initial public offering of about $3 billion, the biggest listing in Japan in more than six years.
JX Advanced Metals’ shares were recently 5.6% higher than the IPO price of ¥820, equivalent to $5.49, on Wednesday in Tokyo after opening 2.8% higher.
Tokyo-based energy giant Eneos has said that the metals subsidiary, which makes materials used in the semiconductor and information-technology industries, will be able to accelerate capital investments as well as research and development as a listed company.
Eneos sold a majority of shares in the business that it previously wholly owned, in the offering that raised about $2.96 billion. The company has said it would use part of the proceeds to fund investments needed to expand the supply of next-generation energy sources, such as synthetic fuels and hydrogen. No new shares were issued.
The Tokyo Stock Exchange hosted several large offerings in recent months after the benchmark Nikkei Stock Average hit record highs last year.
In October, the IPO by subway operator Tokyo Metro raised about $2.31 billion, making it the largest since SoftBank Corp. $21 billion IPO in 2018, according to data from Dealogic.