KKR & the IPO of Kokusai Electric : Revenge is best served cold

KKR, the major American investment firm, intends to make Hitachi Kokusai Electric, the Japanese company that produces chip equipment, available for trading on the Tokyo Stock Exchange before the year comes to a close. If successful, this will be the biggest stock market debut on the Japan Exchange since the year 2018.

During a time of great success in the chip industry and increased interest from international investors in the Japanese stock market, KKR has decided to launch an initial public offering (IPO) on the Tokyo Stock Exchange. KKR has set the company's value at $2.7 billion for the IPO, which is 60% higher compared to its acquisition price in 2017 when it acquired the group from the streamlined Hitachi conglomerate. The IPO is scheduled to occur in the fourth quarter, a period known for numerous IPO activities.

In the following month, there are 10 initial public offerings (IPOs) planned, with an additional 9 scheduled for the month after that. Following a strong surge in performance throughout the year, the Topix index has once again become the center of attention. It had previously taken a step back due to anxieties surrounding geopolitical concerns and tensions between China and the United States. The listing of Kokusai represents a triumph for KKR, as they were unable to successfully sell the chipmaker to Applied Materials, a US company, for $3.5 billion in 2019.