Bloomberg TOKYO (Bloomberg) — Shares of SG Holdings, the operator of the nation’s second-largest parcel delivery company by volume Sagawa Express, could rise as much as 27 percent by a year after its debut this month as investors bet on solid earnings helped by logistics services home and abroad.
With the indicative price range set at ¥1,540 to ¥1,620, book-building is under way for what could be Japan’s biggest initial public offering this year as SG debuts its shares on Tokyo’s exchange on Dec. 13. The IPO comes as optimism over global growth and Japanese corporate earnings helped boost the TOPIX index to levels unseen in a quarter century early last month.
The shares of its biggest rival Yamato Holdings Co., which gets its revenue mostly from domestic operations, have declined 3.9 percent this year and the company booked an operating loss in the April-September period on higher labor costs needed to secure workers.
In contrast, Nippon Express Co., which gets more than 20 percent of its revenue from overseas, has gained 12 percent this year, while the TOPIX has risen 18 percent. SG has said it will develop a global logistics network through the strengthening and integration of domestic and overseas businesses. Speech