Japan Display plans IPO

<p>The Nikkei has been chosen for the company’s stock flotation.</p>

Japan Display has confirmed it will float on the Nikkei later in the month.

The company, which is the world's largest maker of screens for smartphones, stated that it plans to raise $4 billion (£2.4 billion) in a public share float on March 19th.

Japan Display was set up in 2012 by combining the liquid crystal display units of Hitachi, Toshiba, and Sony and the firm is seeking a price of between ¥900 and ¥1,100 (£5.30 to £6.48) per share when it floats this month.

However, this figure is below the earlier guidance that had been issued about the impending stock flotation, potentially indicating investors are cautious over the value of the stocks.

Japan Display (JDI)  makes the screens for most of the world's best-selling smartphones, including the market leading iPhone 5 from Apple and its main competitor the Samsung Galaxy.

JDI formation

A Japanese government-backed fund called the Innovation Network Corporation of Japan (INCJ) helped to set up the company two years ago when it contributed $2 billion (£1.19 billion) to help the firm get started in 2012. INCJ is currently estimated to own around 70 per cent of Japan Display, but it is not clear how this figure could be affected by the impending share sale.

The final offer price is expected to be released by the company in a week's time (March 10th) and then investors will get the chance to buy shares in the firm for the first time nine days later.

In a statement responding to the press last month (February 13th), the firm said: "JDI wishes to make clear that today's media reports referring to JDI's plan to list its stock are not based on any statement made by JDI. JDI currently has nothing specific to announce relating to the subject matter of the media reports referred to above."

JDI aims to "combine the cutting-edge technologies" of the three companies it was combined from, with the goal of "refining and developing them to spearhead the evolution of the display industry itself", according to the company's president and chief executive Shuichi Otsuka.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.