A chip company has completed the biggest initial public offering in Japan so far this year. Shares in microprocessor designer Socionext rose more than 11 per cent on its Tokyo debut on Wednesday despite market declines. The pop is more a reflection of the lack of new listings in the local market than the long-term prospects of Socionext.
The company, which develops customised systems-on-chips, has enjoyed growing demand for its designs amid a boom in the automotive chip market in recent years. The gains come even after the shares priced at the top of the marketed range.
This is a surprisingly good time for Socionext to float in Japan, where there has been an 80 per cent decline in funds raised through public offerings this year. This means pent-up demand from investors, who have piles of cash to deploy. The yen fell to fresh 24-year lows on Wednesday, improving the competitiveness of exports. That should help Socionext overseas.