Sony Financial shares leap in Tokyo debut in spin-off
TOKYO :Shares in Sony Financial rose on their first day of trading in Tokyo on Monday as the business is spun off from entertainment and technology conglomerate Sony.
The shares rose as high as 210 yen in Tokyo before losing momentum over the course of the day to end at 173.80 yen. The reference price was 150 yen.
The business has a market capitalisation of 1.24 trillion yen ($8.35 billion).
Sony is distributing shares in its finance arm, which includes banking and insurance, to shareholders through dividends in kind as it focuses on entertainment.
Sony Financial has said it will buy back up to 100 billion yen of its shares.
It is the first partial spin-off in Japan taking advantage of a 2023 tax change and the first direct listing in more than two decades.
In a direct listing, a company lists on the stock market without a traditional initial public offering (IPO).
The spin-off separates the balance sheets of the financial and non-financial businesses, helping investors understand their aims, Sony has said.
Compared with an IPO, the spin-off allows a large-scale separation in a relatively short time with low risk, according to the conglomerate.
Sony aims to expand its presence in entertainment from games to movies and music, and maintain its position as the leading manufacturer of image sensors.
($1 = 148.5900 yen)
