Go Inc. IPO Raises JPY 88.6B, Shares Surge 10% on Debut
NMR•Go Inc. raised JPY 88.6 billion ($553 million) in its Tokyo debut, valuing it at JPY 186 billion as shares jumped 10%. The offering was 25 times oversubscribed with 70% allocated to international investors, and Go forecasts revenue of JPY 40.8 billion (up 30%) and JPY 7 billion operating profit.
1. IPO Details and Debut Performance
Go Inc. priced its shares to raise JPY 88.6 billion, securing a market valuation of JPY 186 billion. On debut, shares surged 10%, reaching as high as JPY 2,948, marking the largest Japanese IPO this year.
2. Investor Allocation and Oversubscription
International investors received 70% of the offering, local retail investors 25% and domestic institutions 5%, as demand exceeded available shares by over 25 times. The international tranche alone was nearly 20 times oversubscribed.
3. Major Backers and Institutional Support
Global asset managers including BlackRock, Wellington Management and M&G Investment Management committed to the international portion of the IPO. Goldman Sachs invested JPY 10 billion in 2023 at a valuation of JPY 135 billion, underscoring strong institutional backing.
4. Financial Forecast and Potential Risks
Go projects JPY 40.8 billion in revenue for the year ending May 31, up about 30% from the prior year, and operating profit of JPY 7 billion versus JPY 2.7 billion previously. Competition from Uber, Didi and S.Ride, along with possible regulatory changes, could pressure future growth.
