Japan Display Inc., a supplier of screens for Apple Inc. devices, and its owners are seeking about 409.1 billion yen ($4 billion) in the country’s biggest initial public offering in 18 months.
Japan Display will sell 140 million new shares in the offering, while investors will sell 213.9 million existing shares, according to terms for the deal obtained by Bloomberg News. The Tokyo-based company will set the price range on March 3 and a final price on March 10, the terms show.
A $4 billion deal would be the nation’s biggest initial public offering since Japan Airlines Co.’s $8.4 billion sale in September 2012, according to data compiled by Bloomberg. It offers a partial exit for state-backed Innovation Network Corp. of Japan, which spent 200 billion yen for a 70 percent stake in Japan Display when it was formed through a three-way merger in 2012.
Japanese stocks were the best performers among major Asian markets over the past year, encouraging investors such as Bain Capital LLC and Cerberus Capital Management LP to recoup funds through first-time share sales. Nomura, the country’s No. 1 equity underwriter in 2013, expects IPOs will almost double to 1 trillion yen this year.
Shares of Japan Display will start trading in Tokyo on March 19, according to the terms. Nomura Holdings Inc., Morgan Stanley and Goldman Sachs Group Inc. are joint global coordinators for the offering, the terms show. Bank of America Corp., Deutsche Bank AG and UBS AG are also among banks helping manage the sale.
Seibu Holdings Inc., the Japanese hotel and rail operator part-owned by Cerberus, plans to list on the Tokyo Stock Exchange as early as April, people familiar with the matter said last month. Skylark Co., the operator of Jonathan’s family-style restaurants in Japan, is working with Nomura Holdings Inc. and Bank of America Corp. on an initial public offering, people familiar with the situation have said.
Japan Display was created when Sony Corp. (6758), Toshiba Corp. (6502) and Hitachi Ltd. (6501) spun off their panel businesses to INCJ after struggling to compete in the television display market. INCJ is selling 186 million Japan Display shares in the offering, while the other three Tokyo-based companies are each selling 9.3 million shares, according to filings to the Tokyo Stock Exchange today.
INCJ was founded in July 2009 to invest in technology that would make the Japan’s industries more globally competitive. It has completed about 60 deals, investing a total of 700 billion yen, according to its website. Japan Display’s listing will be the fund’s first exit through an IPO, according to an INCJ spokeswoman who asked not to be identified, citing company policy.
The fund has 280 billion yen of funds from the government and companies, and has the capacity to invest as much as 2 trillion yen backed by government guarantees, its website shows.
INCJ said Feb. 12 it agreed to invest as much as 500 million yen in Squse Inc., a Kyoto-based maker of robotic hands able to pick up food. Last year, it bought stakes in Prism Pharma Co., a Japanese drug-discovery company, and Royal Gate Inc., a Tokyo-based developer of mobile payment devices, according to data compiled by Bloomberg.