Japan’s Largest IPO Since 2018 Set To Raise $3 Billion

JX Advanced Metals Corp., a key global supplier of semiconductor materials and a subsidiary of Japan’s oil giant Eneos Holdings Inc., is poised to raise approximately ¥460 billion ($3 billion) in what would be Japan’s largest initial public offering (IPO) since 2018. According to a filing made on Friday to the Ministry of Finance, the company has set an indicative price of ¥862 per share. The final pricing will be announced on March 10, and JX is scheduled to begin trading on the Tokyo Stock Exchange on March 19.

This IPO is set to surpass last year’s record-breaking debut of Tokyo Metro Co. and become the largest since SoftBank Corp.’s listing in December 2018. It signals a strong year ahead for Japanese IPOs, which outperformed other regional markets in 2024. The offering from JX is especially significant as it is closely watched by other firms looking to go public and could provide a gauge of the market’s ongoing optimism.

Takamasa Ikeda, senior portfolio manager at GCI Asset Management Inc., noted that this deal could set the tone for future IPOs. If JX’s stock performs well after listing, it would likely boost investor confidence, particularly among retail investors.

Eneos, Japan’s largest oil refiner, is selling up to 534.9 million shares in JX, with proceeds earmarked for enhancing shareholder returns and advancing investments in decarbonization. Eneos reported strong third-quarter earnings last Friday, exceeding expectations.

The listing is also expected to enhance corporate value for both Eneos and JX, the latter of which is shifting its focus toward becoming a leader in the semiconductor and technology sectors. JX holds around 60% of the global market share in sputtering target materials, crucial for semiconductor circuitry, underscoring the IPO’s importance in relation to the burgeoning demand for chips, especially in AI applications.

Daiwa Securities Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Mizuho Financial Group Inc. are serving as joint global coordinators for the IPO.

In 2024, Japan’s IPO market saw over ¥960 billion in offerings, the highest since 2018, with notable deals including Kioxia Holdings Corp. and Rigaku Holdings Corp. The market also saw private equity-backed listings, such as Kuroda Group Co., further fueling growth.