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Japan's Kokusai Electric to hold secondary offering; KKR to sell shares

Published 07/09/2024, 09:11 PM
Updated 07/10/2024, 03:55 AM
© Reuters. FILE PHOTO: A sign of Kokusai Electric is pictured in Tokyo, Japan, September 7, 2023. REUTERS/Miho Uranaka/File Photo

TOKYO (Reuters) -Kokusai Electric said on Wednesday it would hold a secondary offering of up to 60.4 million shares, with investors including private equity firm to sell shares.

The secondary offering would be worth about 326 billion yen ($2.02 billion) including overallotment based on Wednesday's closing price and follows a blistering run in the shares of the Japanese chip equipment maker.

Kokusai, which closed down 8% in Tokyo on Wednesday after Reuters reported the share sale plan, said it would buy back shares worth up to 18 billion yen.

Including overallotment KKR's stake would fall to 23% from around 43% previously.

Kokusai has a market capitalisation of roughly $8.5 billion and its shares have gained about 75% year-to-date.

© Reuters. FILE PHOTO: A sign of Kokusai Electric is pictured in Tokyo, Japan, September 7, 2023. REUTERS/Miho Uranaka/File Photo

The company is targeting improved margins and investors are rushing to back chip equipment manufacturers amid expectations that investment in technology such as artificial intelligence will boost the sector.

($1 = 161.4600 yen)

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