Suntory makes big IPO splash on Tokyo Stock Exchange

July 3, 2013 at 7:19 AM
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TOKYO, July 3 (UPI) -- Japan's soft-drinks maker Suntory Beverage & Food Ltd. scored a big initial public offering Wednesday on the Tokyo Stock Exchange, raising about $3.8 billion.

It was Asia's largest IPO so far this year, ahead of the $2.1 billion debut of Thailand's BTS Rail Mass Transit Growth, Kyodo News reported.

Shares of Suntory, a unit of Osaka-based Suntory Holdings Ltd., were up about 3 percent at 3,164 yen a share during TSE's morning session. The offer price was 3,100 yen a share.

The money is expected to be used for mergers and acquisitions overseas.

Kyodo quoted the research firm of Dealogic Holdings, that the IPO is also the world's second largest this year after the $5 billion listing of Brazilian financial services company BB Seguridade Participacoes SA in April.

Suntory Beverage & Food makes Boss coffee and other well known Japanese brands and distributes Pepsi in Japan.

CNNMoney said while Suntory's shares traded well above the offer price Wednesday, its IPO comes at a time of much market volatility.

The Japanese government led by Prime Minister Shinzo Abe is trying to bring about an economic recovery after ending the country's prolonged deflation.

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