Kokusai Electric announced on Wednesday that it will be conducting a secondary offering of up to 60.4 million shares, with participation from private equity firms looking to sell shares. The secondary offering is estimated to be valued at around 326 billion yen ($2.02 billion) including overallotment, based on the closing price on Wednesday, following a significant surge in the shares of the Japanese chip equipment maker.
Despite closing down 8% in Tokyo after news of the share sale plan broke, Kokusai Electric stated that it will be repurchasing shares worth up to 18 billion yen. This move would result in KKR’s stake dropping to 23% from its previous holding of around 43%. With a market capitalization of approximately $8.5 billion, Kokusai Electric has seen its shares rise by about 75% year-to-date.
The company’s focus on improving margins has attracted investors, who are showing strong support for chip equipment manufacturers amid expectations of increased investment in technologies like artificial intelligence, which are set to drive growth in the sector.
($1 = 161.4600 yen)