Shares of Japan Display - the world's largest maker of smartphone screens – plunged on their trading debut Wednesday, with analysts attributing the dismal performance to the mispricing of its stock.
"The pricing was wrong simply because you're seeing more and more competition coming through from the AU Optronics of the world. We are expecting more supply to come through," Amir Anvarzadeh, director of Japan equity sales at BGC Securities told CNBC, referring the Taiwanese manufacturer of liquid crystal display (LCD) screens.
"Demand is going to be strong this year, but this year is going to be short-lived. I think competition is going to commoditize the business. [With the stock priced] at 12 times earnings, would I pay for that? No. Simple as that," he added.
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Japan Display shares opened at 769 yen - 15 percent below their offer price of 900 yen - and continued to decline in the morning session.