Exclusive-Tekscend Photomask targets $2 billion valuation in Japan IPO, sources say

By Miho Uranaka and Sam Nussey

TOKYO (Reuters) -Tekscend Photomask, a Japanese manufacturer of photomasks for chipmaking, is aiming for a valuation of 300 billion yen ($2 billion) in its initial public offering, two sources familiar with the matter said.

The company, which is part of Toppan Holdings, could receive listing approval from the Tokyo Stock Exchange as soon as late September, according to the sources, who declined to be named as the information is not public.

Reuters is reporting the targeted valuation for the first time. Toppan's shares erased losses and were up 2% following the report.

Toppan carved out the manufacturer three years ago with private equity firm Integral taking a stake in the company.

The IPO will include the sale of both new and existing shares, the sources said. Integral will sell shares it holds in the IPO, one of the sources said.

Toppan and Tekscend Photomask are currently preparing for the IPO, the photomask maker said. Toppan said the specific schedule has not been decided.

Integral did not immediately respond to a request for comment.

Tekscend Photomask follows chipmaker Kioxia in taking advantage of rules that allow companies to communicate with potential investors in the IPO before receiving listing approval from the Tokyo bourse.

The company manufactures photomasks, which are used to transfer patterns onto semiconductor wafers. Toppan has a 50.1% stake in the business, with Integral holding the remaining 49.9%.

There have been fewer IPOs year-to-date in Japan than in any year since 2014, according to LSEG data. Total proceeds this year have been buoyed by the IPO of JX Advanced Metals in March, the largest offering since SoftBank in 2019.

Bank of America, Nomura, SMBC Nikko and Morgan Stanley MUFG Securities are lead underwriters on the Tekscend Photomask IPO, the sources said.

Bank of America, Nomura, SMBC Nikko and Morgan Stanley MUFG Securities declined to comment.

($1 = 147.3600 yen)

(Reporting by Miho Uranaka and Sam Nussey; Editing by Jacqueline Wong)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• BofA's Hartnett sees dollar slump, risk selloff if bond intervention fails
• Israel strikes southern Syria; Damascus condemns attack
• Canada to impose retaliatory tariffs on US steel, electronics, other products, Carney says