The Japanese subsidiary of US coffee shop chain Starbucks is aiming to raise ¥13.3bn (US$109.1m) next month when it undertakes an IPO on Nasdaq Japan. 220,000 new shares will be offered at an initial price of about ¥60,455.
Japanese equity markets are currently sluggish, but Starbucks hopes its high-profile listing will stimulate interest among stock buyers. It hopes to emulate the success of McDonald’s Japan, whose stock market listing in June was the largest on Japan’s lethargic new issues market this year.
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Starbucks is hoping to use some of the money raised through the IPO to build and furnish new outlets, although the bulk of the income will go to pay down debts.
Mayumi Ogino, analyst at ING Barings, was quoted in the Financial Times as saying: “Just by looking at the earnings per share figures, the valuation may appear slightly high. But when one calculates in the brand premium of Starbucks, some customers may consider the share a bargain.”
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