38 International Financing Review Asia November 25 2017of ¥1,602–¥1,622 each. The final price is
a discount of 4.47% to yesterday’s close of
¥1,677.
Books were several times covered with
interest from global long-onlys and hedge
funds. There were more than 80 lines in
the book with the top 10 allocations made
up more than 60% of the book.
Bank of America Merrill Lynch, Morgan
Stanley and Nomura were the joint
bookrunners.
In June, Bain Capital raised ¥41.5bn from
the sale of 25.5m Skylark shares at ¥1,630
each. The sell-down also had the same three
banks as arrangers.› SG SETS PRICE RANGE FOR IPOJapanese delivery and logistics company SG
HOLDINGS has set a price range of ¥1,540–
¥1,620 to target up to ¥128bn from its
Tokyo Stock Exchange IPO.
The company is selling up to 78.8m
shares, including an overallotment option
of 7.1m shares. Its market capitalisation
could top ¥500bn.
The Japanese offering constitutes 70%
of the IPO and the international offering
30%. The selling shareholders are the SG
Holdings Group Employee Shareholdings
Association and Nobuaki Kondo. There is a
180-day lock-up on the company and selling
shareholders.
Bookbuilding for the internationaloffering runs from November 24 to
December 1.
Daiwa and Morgan Stanley are joint global
coordinators.› DAIFUKU PLANS ¥25.2BN PLACEMENTDAIFUKU plans to raise around ¥25.2bn
through a domestic placement of
shares.
The manufacturer of material handling
systems and equipment is looking to
make available up to 3.48m shares, of
which 2.48m will be primary and 1m will
be secondary. There is an overallotment
option of 520,000 shares.
The indicative discount level is 3%–5%
to the November 22 close of ¥6,410 each.
Bookbuilding is on December 4 and pricing
will be on December 5.
Mizuho is arranging the placement.› SOSEI PRICES ¥22.3BN FOLLOW-ONSOSEI GROUP has priced its ¥22.3bn follow-on
offering at a 6% discount.
The Japanese biopharmaceutical
company offered 2.07m primary
shares, including 270,000 in an over-
allotment option, at ¥10,800 each. The
price represents a discount of 6% to the
company’s closing on Monday, versus a
marketed range of 4%–6% discount.
There is a 90-day lock-up period on thecompany and its management.
Bank of America Merrill Lynch and JP Morgan
were the joint lead managers and joint
bookrunners.› OLYMPUS PLANS ¥51.96BN PLACEMENTOLYMPUS plans to raise around ¥51.96bn
through a domestic placement of shares.
The manufacturer of precision
machineries and instruments is looking
to offer up to 9.94m secondary shares.
There is an overallotment option of 1.49m
secondary shares.
The indicative discount level is 3%–5%.
Bookbuilding will start on December- Pricing is slated for December 4 at the
earliest. The shares closed at ¥4,550 on
November 24.
Sumitomo Mitsui Banking Corp, Bank of
Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust
and Banking Corp, Mizuho Bank and SMBC
Friend Securities are selling shareholders.
SMBC Nikko and Mitsubishi UFJ Morgan
Stanley are joint bookrunners.
› CHUGOKU ELECTRIC SELLS ¥100BN CBJapanese utility CHUGOKU ELECTRIC POWER
has raised ¥100bn from the sale of dual-
tranche zero-coupon euro-yen convertible
bonds.
A 2.2-year ¥50bn tranche was issued at
the bottom of the 100.5%–101.5% rangeToshiba takes action to avoid delisting
Equities Electronics giant to raise funds from private placement to maintain statusJapanese electronics giant TOSHIBA is to
raise about ¥600bn (US$5.4bn) from the
private placement of new shares to overseas
investors, allowing it to avoid a delisting
before the March deadline.
The deal, with Goldman Sachs as the
sole placement agent, will help prevent
embattled Toshiba from being delisted
as it is trying to fill a balance-sheet gap
stemming from its bankrupt US nuclear
subsidiary.
Toshiba sold its chip business, Toshiba
Memory Corp in September to a Bain Capital-
led consortium for US$18bn. The disposal,
however, may not close before the end of the
financial year to March. The company will be
delisted if it failed to return to positive net
worth by then.
Toshiba is selling 2.28bn new shares,
or about 35% of the enlarged equity
capital, at ¥262.80 each, a 10% discount
to its closing price of ¥292. The proposedissuance will result in a 54% dilution in
earnings per share.
Despite the heavy dilution, Toshiba’s
shares saw support after the announcement
of the fundraising plan as it allowed the
company to maintain its listing status.
“The placement is the quickest way to
secure the funding for the company. The
heavy dilution is not ideal, but it’s the best
option for the company,” said a person close
to the deal.
Toshiba shares fell 5.8% to ¥275 last
Monday after the sale was announced. The
stock then rebounded a combined 10.2% last
Tuesday and Wednesday.
According to the filing, about 30 investors
have committed to participate in the share
sale through 60 funds.
The biggest chunk of the offering has been
allocated to Singapore-based fund Effissimo
Capital Management, which committed to
take 320m shares. Effissimo is already thebiggest shareholder of Toshiba with a stake
of 9.84%, according to Thomson Reuters
data.
Segantii, Harvard Management, Third
Point, Oasis Management, Cerberus Capital
Management and Elliot International are also
among the investors.
Apart from working with Goldman on the
transaction, in the filing, Toshiba also said it
has hired Nomura as a financial adviser for
the deal and had sought advice from Mizuho
and SMBC Nikko.
The filing also stated Toshiba is expected
to receive net proceeds of ¥574bn from the
share sale, after paying a ¥26bn combined
fee to the deal’s intermediaries. The fee is
normally shared among placing agents,
domestic brokers, financial advisers and
lawyers.
The share sale is expected to be completed
in early December.
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