Morningstar IPO soars!
Tokyo, June 23 (Bloomberg) -- Morningstar Japan K.K., an affiliate of the
Chicago-based mutual fund rating firm, surged as much as 62 percent in its
debut on the Nasdaq Japan market, as investors bet its online business will
drive earnings.
The company, which rates the performance of mutual funds, rose as high as
11.31 million yen ($108,105) from its 7 million yen initial share price. It was
the most active stock on Nasdaq Japan Inc.'s new market, with 3.6 billion yen
of shares traded.
The company said it plans to use the sale proceeds to expand its Internet
business to provide information ``which other companies cannot,'' by boosting
coverage of bonds and currencies.
``It's a new industry in Japan and it's a growing business,'' said Edwin Merner,
a fund manager of the Atlantis Japan Growth Fund, which manages about
$300 million in assets. ``The more hits they get, the more advertising they get,
the more interest they get in their services.''
Shareholders of Morningstar Inc.'s Japanese unit sold 7 billion yen of shares in
an initial public offering last week, one of the first times a closely held U.S.
company decided to take its Japanese subsidiary public.
By going public in Japan, the company is targeting the higher values typically
paid for stocks in the world's No. 2 economy.
Pension Fund Coverage
The Japanese company is the ninth firm to have its shares traded on Nasdaq
Japan, a 50-50 joint venture between the National Association of Securities
Dealers and Softbank Corp. Softbank Finance Corp. holds 49.8 percent of
Morningstar Japan.
U.S. parent Morningstar Inc. owns 39.8 percent of the Japanese unit, while
Toyo Keizai Inc., which compiles earnings forecasts for Japanese companies,
holds a 3.6 percent stake.
Morningstar Japan will spend 1 billion yen to upgrade its computer servers and
other equipment. It will also boost coverage of pension-related businesses
before Japan starts a program similar to the U.S. 401(k) system next year.
Formed in April 1998, Morningstar Japan claims it currently attracts more than
1.5 million page accesses a month on its Web site, which offers the ratings of
stocks and IPOs.
The company said it earned 12.3 million yen in net income in 1999, most of
which came from advertising on its Web site. It lost 100.8 million yen the
previous year.
Daiwa Securities SB Capital Markets managed the share sale.
Morningstar Japan shares recently traded at 10.92 million, up 56 percent.
Access More Information and Services Above
¸2000 Bloomberg L.P. All rights reser |
