Japan's Biggest IPO of 2017 May Deliver Almost 30% in a Year

SG Holdings shares seen reaching 1,900-2,000 yen by end-2018
Stock is not overvalued based on indicative price: Shinkin

Boxes travel along a conveyor belt for a demonstration during a media preview of the Sagawa Tokyo Logistics Center, operated by Sagawa Express Co., in Tokyo, Japan, on Thursday, Dec. 13, 2012. Sagawa Express provides a variety of delivery-related services ranging from home delivery to logistics consulting in Japan.
Photographer: Noriyuki Aida/Bloomberg

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By Keiko Ujikane and Nobuyuki Akama

November 30, 2017 at 8:00 PM UTC

Updated on

December 1, 2017 at 6:27 AM UTC

This article is for subscribers only.

Shares of SG Holdings Co., the operator of Japan’s second-largest parcel delivery company by volume Sagawa Express, could rise as much as 27 percent by a year after its debut this month as investors bet on solid earnings helped by logistics services at home and abroad.

With the indicative price range set at 1,540 yen to 1,620 yen, book-building is under way for what could be Japan’s biggest initial public offering this year as SG debuts its shares on Tokyo’s exchange on Dec. 13. The IPO comes as optimism over global growth and Japanese corporate earnings helped boost the Topix index to levels unseen in a quarter century early last month.