JX Advanced Metals Corp.’s initial public offering (IPO) has been priced at the upper end of its marketed range, making it Japan’s largest IPO since SoftBank Corp. went public in 2018. According to a source familiar with the matter, Eneos Holdings Inc. sold shares of JX Metals at ¥820 each. If the over-allotment option is exercised, the total proceeds from the sale would amount to ¥439 billion ($3 billion). JX Metals is set to list on the Tokyo Stock Exchange on March 19.
The pricing signals strong investor confidence in Japanese IPOs, even as the global trade war impacts stock markets. Technology and semiconductor stocks have faced volatility due to uncertainties over tariffs and reduced spending on AI-computing equipment. Eneos had previously adjusted expectations for JX Metals’ pricing to a range of ¥810 to ¥820 per share in response to market conditions.
JX Metals plays a key role in the semiconductor industry, supplying crucial materials to leading clients such as Taiwan Semiconductor Manufacturing Co. and Intel Corp. The semiconductor materials segment accounted for approximately one-third of JX Metals’ operating profit in the fiscal year ending March 2023.
Eneos, Japan’s largest oil refiner and the sole owner of JX Metals before the IPO, conducted a global sale of part of its stake. The company has announced that it will use the funds raised to enhance shareholder returns and invest in decarbonization initiatives.
The IPO was managed by a consortium of major financial institutions, with Daiwa Securities Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Mizuho Financial Group Inc. acting as joint global coordinators.
Japan’s IPO market experienced a resurgence in 2023, with offerings surpassing ¥960 billion. Notable listings included Kioxia Holdings Corp. and Rigaku Holdings Corp., with private equity-backed firms such as MBK Partners Ltd.-backed Kuroda Group Co. contributing to the strong performance. The successful pricing of JX Metals’ IPO could encourage further listings in Japan’s capital markets.
