Shares in Japan’s two largest initial public offerings this year rose in Tokyo on Wednesday after both companies priced the stock at the top of the market range.
Shares of Daiei Kankyo Co. Ltd., which offers recycling services, rose 40% to 1890 yen. The placement helped raise about $315 million. Japanese discount carrier Skymark Airlines Inc. traded at 1328 yen or 14% above the listing price at one time. The company is now returning to the exchange after raising 32.5 billion yen.
Companies in Japan are returning to the market after postponing many deals due to growing geopolitical concerns and rising stock volatility. Sixteen companies have listed on local exchanges since the start of the fourth quarter, taking advantage of a favorable December to lock in funding before the fiscal year closes in March.
The Daiei Kankyo IPO is one of the IPOs that go directly to the main TSE market, which determines who they are distributed to, the smallest ones usually go to retail, and most Japanese IPOs go to standard or growth markets.
The Prime group allows stocks to be added to the Topix benchmark, which could lift demand towards the end of January.
Daiei Kankyo aims to use the proceeds to expand its wastewater treatment plant. Future funds will also benefit Skymark. The airline, which went bankrupt in 2015, is returning to the Tokyo stock exchange.
In Japan, listings raised at least $100 million in five years and ended their first session up 16%.
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