Suntory Beverage and Food Ltd (2587.T) managed a modest rise in its debut on Wednesday after a $4 billion IPO, as investors shrugged off volatile markets and rich valuations to buy up what may be Japan's last big corporate listing of 2013.
Suntory's offering, Asia's biggest IPO so far this year and aimed at building up a warchest for overseas acquisitions, is part of a surge in Japanese equity issuance as companies cash in on higher valuations from a rallying stock market.
The rally stalled in mid-May and the market has turned volatile but Prime Minister Shinzo Abe's reflationary policies continue to support less high-profile equity issuance, with advertising firm Dentsu Inc (4324.T) announcing on Wednesday it would tap the market for $1.2 billion in a secondary offering to pay down debt.
"I believe the market can digest more share offerings easily," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management. "The market has regained confidence in the long-term upward trend in stock prices."
Suntory Beverage rose to 3,145 yen in its maiden session, up 1.5 percent from the IPO price of 3,100 and defying weak signals from the grey market, where it traded last week at 2,900 yen.
The yield on the 10-year Japanese government bond turned negative for the first time ever Tuesday afternoon amid global financial turmoil, with Japan becoming the second country after Switzerland with a negative benchmark long-term interest rate. (Kyodo)
North Korea took another step toward its goal of developing an intercontinental ballistic missile capable of reaching the U.S. mainland, with the range of the rocket launched Sunday estimated at up to 13,000km. (Nikkei)
Following a stabbing incident that left one woman dead and another injured, Hokkaido Prefectural Police announced on Monday that a 30-year-old man is wanted in connection with the crime, reports the Yomiuri Shimbun (Tokyo Reporter)
The day before his arrest at his apartment for possession of stimulant drugs, former professional baseball player Kazuhiro Kiyohara visited a dealer in Gunma Prefecture, investigative sources revealed on Friday, reports Sports Hochi. (Tokyo Reporter)