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To: Maurice Winn who wrote (16326)	10/12/1998 8:08:00 AM
From: DaveMG	Respond to of 152472

NTT IPO DoCoMo IPO will set record Japanese mobile telecoms operator to raise $18bn, writes Paul Abrahams in Tokyo The initial public offering for NTT DoCoMo, the Japanese mobile telecoms operator, will be priced today at a little less than ¥4m ($32,500) a share, raising between $18bn and $19bn and confirming its status as the world's largest share issue. The DoCoMo issue has been more than twice subscribed despite turbulence in the world's equity markets. There had been fears that market volatility - the benchmark Nikkei 225 index was trading near its 13-year low last week as the yen soared against the dollar - could halt the deal. The indicative price range had been between ¥3.4m and ¥4.3m. Demand was not price sensitive, but DoCoMo and its parent, NTT, decided to set a price at less than ¥4m to ensure an orderly market when trading is set to begin on October 22. Only 545,000 shares are being issued, raising about ¥2,150bn. The dollar value of the deal has been boosted by the spurt in the yen last week. The previous largest share issues were the IPO for NTT itself, which raised $13.6bn in 1986, and Deutsche Telekom's issue for $13.3bn in 1995. DoCoMo, the world's largest mobile telecoms operator, will be the third largest company by market value on the first section of the Tokyo stock exchange, behind Toyota and NTT. The group will represent about 3 per cent of the Topix index of all first section shares. The issue was lead-managed by Goldman Sachs and Nikko Securities. The fees for the syndicate for such an issue are typically about 2 per cent, or about $370m. Most will go to the lead managers, although the DoCoMo syndicate was unusually small. DoCoMo will use the proceeds of about ¥1,260bn from the sale of 327,000 new shares to reduce debt and fund the development of its third generation W-CDMA mobile telecoms standard. NTT will raise about ¥840bn from the sale of its 218,000 shares. The company is considering whether to use the sum to buy back shares, reduce debt or pay a special dividend. NTT will still hold 67.13 per cent of DoCoMo after the IPO. The finance ministry has appointed Daiwa Securities, Goldman Sachs and LTCB Warburg to lead-manage a secondary issue of NTT shares by the end of the calendar year. Demand for DoCoMo was strong in both the domestic and international tranches. As expected, about 45 per cent of the shares were sold to domestic retail investors. About 25 per cent went to Japanese institutions, 12 per cent to North America and 18 per cent to other countries. Financial Times...