Japanese drinks company Suntory Beverage has successfully completed an almost $4 billion IPO, Asias largest this year, even though markets have continued to be choppy and not particularly supportive of companies going public.
Japan is often viewed, and often rightly, as a law unto itself when looking at Asia and the fortunes of companies there dont have much bearing on the rest of the region.
That said, Suntory and its bankers should be applauded for getting the deal away, particularly because the issuer was forced to set the IPO price at the low end of the indicative range as volatile markets dented investor sentiment in the run-up.
Encouragingly for the wider market, Suntorys story is not unique. In Japan, the opening-day share prices for more than 20 recent IPOs have exceeded their pre-market fixed prices as retail investors pile into companies in the firm belief that Japans growth path is assured. In fact, with the much-reported liquidity problems in China, Japan is emerging as something of a bright spot in Asia at exactly the right time.