Targeting a listing as early as March 2025, JX Advanced
Metals Corporation (JXAM), a division of the biggest oil refiner in Japan, is
getting ready for an initial public offering (IPO) on the Tokyo Stock Exchange.
Selling half of its ownership will help the company to raise at least 400
billion yen (about $2.61 billion), thereby valuing JXAM at minimum 800 billion
yen.
Rising above Tokyo Metro's offer from last year and marking the most important
listing since SoftBank's telecom division in 2018, this IPO is likely to be
Japan's biggest in seven years. The action fits Eneos's approach to maximise
its portfolio and focus on development sectors, especially in the field of the
energy transition.
Emphasising semiconductor components, JXAM has developed from conventional
mining and smelting activities into a major producer of innovative materials.
Especially, the company generates sputtering targets, which are necessary for
manufacturing thin metal layers in chips. About a third of its 81 billion yen
running income in the past financial year came from semiconductor materials.
To further its presence in the semiconductor materials market, the company has
also made investments in a new Arizona facility producing sputtering targets.
Listing JXAM, Eneos hopes to enable quick investment decisions required to
change its company portfolio to meet targets for the energy transformation. The
IPO will allow JXAM to create a management structure fit for quick decisions
and efficient capital allocation, hence speeding investments in competitive
sectors including semiconductor and advanced materials.
After examination by the Japan Exchange Regulation, the listing is pending
permission from the Tokyo Stock Exchange. Approved, this calculated action is
projected to increase the corporate value of Eneos and JXAM, therefore
preparing them for sustained development in their respective domains.
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