NEC Electronics, the chip manufacturing division of NEC Corporation that employees 350 people in the Republic is set to launch what will be Japan's largest initial public offering (IPO) this year.
The Japanese company said yesterday that it planned to raise up to $1.2 billion (€1 billion) through the sale of 37 million shares in the electronics unit to domestic and overseas investors.
The company will be listed on the Tokyo stock exchange on July 24th. The IPO will fund capital investment and the introduction of new technology. NEC Electronics produces chips for a range of products, including computers and mobile phones.
It employs 350 people at a plant in Ballivor, Co Meath through a subsidiary, NEC Semiconductor Ireland. The factory manufactures chips for the motor industry.
Reports said yesterday that NEC would offer 23.5 million shares in the company, which would fetch $682 million.
But the parent has the scope to offer a further 13.5 million shares to investors if it wishes.
If investors subscribe to the increased offering at the likely asking price of $32 million, this would raise $1.2 billion.
Reports yesterday said that recent new offerings on the Tokyo market were over-subscribed, and predicted that NEC's offer would be successful.
NEC re-structured the group into NEC Corporation and NEC Electronics last November. At the same time, it signalled that it would offer shares in the chip manufacturing arm.
