JX Advanced Metals raises $3 billion in Japan IPO

JX Advanced Metals, a semiconductor materials maker, had a successful debut on the Tokyo Stock Exchange, raising $3 billion. This is Japan's largest initial public offering (IPO) since 2018. On its first trading day, the company's shares rose by 5.8 percent to ¥868, exceeding the IPO price of ¥820. The IPO is a significant move for Eneos, which owns JX Advanced Metals. Eneos plans to keep 42.4 percent of the shares while shifting towards low-carbon businesses. This strategy aims to reduce its conglomerate discount. The last major IPO in Japan was SoftBank's telecom arm, which raised $23.5 billion. JX Advanced Metals operates during a challenging time for tech stocks, particularly in the semiconductor sector. The company reduced its initial price range due to weak investor interest amid market concerns, notably linked to U.S. tariff threats. Analysts suggest caution, as recent trends have led to significant sell-offs in tech stocks. Despite these concerns, some investors believe there may be opportunities in the current market. JX Advanced Metals holds a substantial share of the global market for materials used in semiconductors. The company aims to expand in high-growth technology areas while still deriving much of its profit from traditional metals. Analysts are now watching to see if Eneos will announce shareholder returns, such as buybacks or dividends, following the successful IPO. Major firms like Daiwa Securities and Mizuho Securities were involved in underwriting this IPO.