Japanese companies have sold the most shares to the public in 20 years, underscoring that even last month’s stock market crisis has not dampened investor demand for new shares.
Companies from automaker Honda Motor to shoe maker Asics have closed at least 80 deals in the fiscal year that began April 1, including initial public offerings, additional share sales and equity-linked bond issuances worth a total of about ¥2.9 trillion ($20.5 billion), according to data compiled by Bloomberg. That’s the most for the period since fiscal 2004, with some saying the annual total could double from year-to-date levels.
The record rally in Japanese stocks this year has stalled, with both the Topix and Nikkei 225 gauges down 12% on August 5, underscoring the risks of putting money into already high-flying stocks. That has prompted investors in Japan to search for assets with better returns, and one area they are watching is IPOs, which tend to gain sharply on their first few days of trading.
