Key points
- Japanese photomask manufacturer Tekscend Photomask aims for a 300 billion yen ($2 billion) valuation in its IPO.
- Listing approval from the Tokyo Stock Exchange is anticipated as early as late September.
- The IPO will involve the sale of both new and existing shares, with private equity firm Integral selling its stake.
- Toppan Holdings, with a 50.1% stake, and Integral are preparing for the IPO.
Tekscend Photomask, a leading Japanese manufacturer of photomasks crucial for semiconductor production, is gearing up for a significant initial public offering (IPO). The company, spun off from Toppan Holdings three years ago in partnership with private equity firm Integral, is targeting a valuation of 300 billion yen, equivalent to approximately $2 billion, according to sources familiar with the matter.
These sources, who requested anonymity due to the confidential nature of the information, indicate that the Tokyo Stock Exchange could grant listing approval as early as late September.
The IPO will be a dual offering, encompassing both the sale of newly issued shares and existing shares held by current investors. Notably, Integral, which holds a 49.9% stake in Tekscend Photomask, is expected to divest its shares during the IPO.
Toppan Holdings, retaining a majority 50.1% stake, has confirmed preparations are underway for the public offering, although a precise timeline remains unannounced. Integral has yet to respond to requests for comment.
Tekscend Photomask is capitalizing on recent regulatory changes, allowing companies to engage with potential investors ahead of official listing approval. This proactive approach reflects the company’s confidence in its prospects and the strong demand anticipated for its offering.
The company’s production of photomasks, essential components in the semiconductor manufacturing process, places it firmly within a high-growth sector.
Leading the underwriting efforts for this substantial IPO are Bank of America, Nomura, SMBC Nikko, and Morgan Stanley MUFG Securities. The success of the IPO will not only mark a significant milestone for Tekscend Photomask but also underscore the continued vibrancy of the Japanese semiconductor industry and the appeal of the Japanese market for international investors.
