Arab Today, arab today japan display shares plunge from ipo price
Last Updated : GMT 02:46:33
Arab Today, arab today
Arab Today, arab today

Japan Display shares plunge from IPO price

Arab Today, arab today

Arab Today, arab today Japan Display shares plunge from IPO price

Tokyo - AFP

Shares in Japan Display -- the world's biggest maker of screens for smartphones and tablets and a key Apple supplier -- lost almost a quarter of its value on its debut Wednesday, following a $3.2 billion initial public offering. The firm slumped to 706 yen a share at one point from its listing price of 900 yen. It ended the morning session at 758 yen , down 15.78 percent, with one analyst describing the losses as a "disaster". The liquid crystal display maker last week priced the offering at the low end of expectations, suggesting that investors were wary about the sale, but insisting that demand was strong. Japan Display holds a leading 16 percent in the growing $35 billion global market for smartphone and tablet screens, according to US-based research firm NPD Group. And its IPO was one of the biggest in Tokyo since drinks giant Suntory's food-and-beverage unit raised $3.9 billion in 2013. However, analysts have warned it faces tough competition from lower-cost countries, including China, South Korea and Taiwan. To address this the firm -- set up in 2012 through the merger of Hitachi, Toshiba and Sony's money-losing LCD units -- is looking to boost production of small and medium-sized screens. Seiichi Suzuki, market analyst at Tokai Tokyo Securities, told AFP: "This is a company that was made up of units offloaded by their parent firms. (It doesn't) have a bright future." He said the firm should not have "forced its listing", citing a tough market environment with the Nikkei index down around 10 percent this year. -- 'Extremely disappointing' -- Japan Display had earlier said it would sell 140 million new shares between 900 yen and 1,100 yen, while its major private shareholders would offload 213.9 million shares. "A disaster, no doubt," Lorne Steinberg, head of Montreal-based Lorne Steinberg Wealth Management, told Dow Jones Newswires. The deal must have been either badly mispriced or the investor base was misjudged. In North America, dealers routinely support IPOs so that this type of opening performance could only happen if the entire market was also going suddenly bad at the same time." Chris McGuire, chief executive of Chicago-based hedge fund Phalanx Capital Management, dumped all the shares his firm had bought at the open. "The steep price fall is extremely disappointing and shows that the deal was overpriced at issue," he said. Apple accounts for nearly a third of Japan Display's revenue, but the firm also deals with other top gadget makers such as Samsung and Microsoft. The company was formed with the intention of helping Japanese firms better compete in high resolution display technology, which has become the standard for smartphones, tablets and other electronic devices. The government-backed Innovation Network Corp. of Japan (INCJ) held about a 70 percent share of the firm with the three electronics giants each claiming a roughly 10 percent stake. Many Japanese electronics and technology giants have struggled in recent years as they face price undercutting by foreign rivals and painful losses in some consumer product units, including televisions where profit margins are wafer-thin. Once mighty firms such as Sony and Panasonic have been undergoing painful restructuring in a bid to move past years of losses. Sony this month said it would sell properties at a prestigious Tokyo site where it had its headquarters for six decades, as the once-world beating firm struggles to repair its bottom line.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today japan display shares plunge from ipo price Arab Today, arab today japan display shares plunge from ipo price

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today japan display shares plunge from ipo price Arab Today, arab today japan display shares plunge from ipo price

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday