Japan Display Inc. (6740), the supplier of screens for Apple Inc.’s iPhones, fell a second day in Tokyo trading after posting the worst debut of any Asia-Pacific initial public offering worth at least $1 billion since 2008.
The shares dropped 0.8 percent to 757 yen extending the decline since they started trading yesterday to 16 percent. The benchmark Topix index lost 1.6 percent.
The company raised 318.5 billion yen ($3.1 billion) in its IPO and priced shares at the bottom of a planned range. Japan Display was created when Sony Corp. (6758), Toshiba Corp. and Hitachi Ltd. spun off their panel businesses to state-backed Innovation Network Corp. of Japan after failing to keep pace with South Korea’s Samsung Electronics Co.
The offering led by Nomura Holdings Inc., Morgan Stanley and Goldman Sachs Group Inc. came as the high-end smartphone market approaches saturation, with Apple reporting iPhone sales that missed analyst estimates.
Japan Display had planned to sell shares in the range of 900 yen to 1,100 yen, according to terms for the deal. The company sold 140 million new shares and investors including Sony offered 213.9 million existing shares, according to a filing.
Japan Display gets about 32 percent of its sales from Apple, according to data compiled by Bloomberg.
Japan Display’s performance on debut compares with BrisConnections Unit Trust (BCS), an Australian toll-road operator, which raised $1.1 billion from a June 2008 initial public offering and fell 59 percent on its trading debut, according to data compiled by Bloomberg.
Hitachi Maxell Ltd., an electronics and memory storage manufacturer, fell 14 percent below its IPO price on March 18, its first day of trading in Tokyo.
To contact the reporter on this story: Takashi Amano in Tokyo at firstname.lastname@example.org
To contact the editors responsible for this story: Michael Tighe at email@example.com Aaron Clark, Suresh Seshadri