UPDATE 1-Japan Display gets approval for up to $3.8 bln Tokyo listing
(Adds details of the offering)
TOKYO, Feb 14 (Reuters) - Japan Display, the world's biggest maker of screens for tablets and smartphones, gained approval
for a Tokyo listing next month, in an offering worth around
The company, formed from the ailing display units of Hitachi Ltd, Sony Corp and Toshiba Corp, has managed to stage a sharp earnings recovery on the back of booming worldwide consumer demand for mobile devices.
The share sale, on par with Suntory Beverage and Food Ltd's IPO last July, will help the government fund that engineered its turnaround recoup some of its investment as well as raise funds for the company to invest in plant and equipment.
The offering by the supplier to Apple Inc and Samsung Electronics Co Ltd comes amid a pickup in Japanese listings as the reflationary policies of "Abenomics" have boosted Tokyo stock prices more than 60 percent since November 2012.
Hitachi Ltd also said on Friday it would relist its battery and recording media subsidiary Hitachi Maxell, selling shares in an offering worth up to $750 million.
Railroad operator Seibu Holdings and Line Corp, operator of the free messaging app Line, currently owned by South Korea's Naver Corp are other major listings that are considered possible in Tokyo this year.
Banking sources have said Japan Display has been eager to debut quickly before signs of slowing growth emerge in its core business in smartphone and tablets.
The company is offering 140 million new shares which would raise 154 billion yen for investment as the company looks to develop LCD panels for the auto industry,
Existing shareholders are selling 213.9 million shares. The company is 86.7 percent owned by the government-backed Innovation Network of Japan.
The IPO may grow by 18 million shares if underwriters exercise an overallotment option, which could take the total deal value to $4 billion.
It set a tentative IPO price of 1,100 yen and plans to list on March 19.
Companies raised $10.4 billion from IPOs in Japan in 2013, with deal volumes down 19 percent from the previous year, Thomson Reuters data showed. Consulting firm EY forecasts the number of deals in 2014 to rise to about 80 from 60 last year.
Goldman Sachs, Morgan Stanley and Nomura were hired as joint global coordinators of the IPO, with 13 other banks also helping to underwrite the deal, according to the term sheet. ($1 = 102.1650 Japanese yen)
(Additional reporting by Elzio Barreto in Hong Kong and Dominic Lau in Tokyo; Editing by Edmund Klamann and Edwina Gibbs)