In the midst of a thriving chip sector and a growing influx of foreign investor interest in the Japanese stock market, KKR is pressing ahead with plans to launch an initial public offering (IPO) on the Tokyo Stock Exchange. KKR has put forth a valuation of $2.7 billion for the company, representing a significant 60% increase from what it paid to acquire the group back in 2017. At that time, Hitachi had undertaken a consolidation of its various business activities.
The IPO is expected to occur in the fourth quarter of the year, a period known for its heightened IPO activity. What's particularly noteworthy is that this move comes against the backdrop of a bustling IPO market in Japan. There are ten IPOs scheduled for this month and another nine lined up for the following month. This resurgence of interest in Japanese stocks is significant, especially after a period of cautious investment sentiment influenced by geopolitical uncertainties and trade tensions between the United States and China.
Kokusai's upcoming listing on the Tokyo Stock Exchange is not only a strategic financial move but also a major victory for KKR. In 2019, KKR had attempted to sell the chipmaker to US-based Applied Materials for a price tag of $3.5 billion, but that deal had fallen through. This successful IPO marks a significant turnaround and achievement for KKR in the semiconductor sector.