Phil Elliott
09:27 (BST)
18/09/2007
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Sony's IPO scaled back
Financial Company's share price lower due to unsettled global markets
Following earlier estimates that Sony would sell shares in its Financial Holdings company at JPY 415,000, it has now been confirmed that the actual price will be up to eight per cent lower than initial expectations.
This is because, according to a report on Bloomberg, the global market uncertainty sparked by the US subprime mortgage issue has caused a "rout in Japanese financial stocks that erased JPY 1.5 trillion from the nation's three largest banks."
Sony will now look to raise around JPY 300 billion (USD 2.6 billion) by selling 34.5 per cent of the company, rather than the originally hoped-for JPY 332 billion (2.9 billion), which it is predicted the company may assign to the consumer electronics and gaming divisions.
The 725,000 shares are likely to sell for between JPY 380,000 - 400,000 (USD 3305 - 3479) each, although Societe Generale Asset Management Company analyst Hiroyoshi Nakagawa isn't greatly excited about the investment opportunity.
"At the moment I don't see any urgent reasons to buy Sony Financial shares. We have other financial stocks and Sony Financial is not giving any excuse for us to choose that over other stocks. Its earnings aren't growing rapidly.''
Trading in the shares will commence on the Tokyo Stock Exchange on October 11.
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