Nikko Asset to list in $590 million Tokyo IPO

TOKYO Wed Nov 16, 2011 8:07am EST

TOKYO (Reuters) - Nikko Asset Management said on Wednesday that it plans to list its shares through a 45.5 billion yen ($590 million) initial public offering on the Tokyo Stock Exchange, in what will likely be Japan's second-biggest IPO this year.

The country's third-largest asset manager will go public on December 15, with an initial offering of 54.15 million shares, with an assumed selling price of 840 yen per share. It further aims to sell up to 2.98 million shares through over-allotment options, a document from the firm showed.

Nikko Asset plans to price the stock on December 8, it said.

Underwriters for the sale include SMBC Nikko Securities, Nomura Securities and Goldman Sachs Securities, according to the document.

Sumitomo Mitsui Trust Holdings (8309.T), which bought Nikko Asset from Citigroup (C.N) in 2009 and now owns 91.3 percent, will offload part of its shareholdings.

Nikko Asset, which holds $154 billion in assets under management and is seeking new revenues outside Japan, in March bought Australian firm Tyndall Investments and last year said it would buy Singapore's DBS Asset Management.

Nikko Asset has offices in Tokyo, Singapore, London, New York and Hong Kong. It also owns 40 percent of Rongtong Fund Management, an asset management company in China.

Nikko Asset's IPO is set to be Japan's second biggest this year after online-game company Nexon Co, which announced last week it will sell about 95 billion yen of shares. Nexon shares will start trading on December 14.

Stock market participants said a series of IPOs in December is not expected to hurt sentiment for the overall market.

"The offerings by Nikko Asset and Nexon are not expected to hurt the supply and demand balance of the market," said Hideyuki Ishiguro, assistant manager of the investment strategy section at Okasan Securities.

"Beside these big ones, there are several other small IPOs scheduled for around the end of the year. This is a positive sign that we are seeing a pickup in IPOs, which could also be positive for overall domestic stock market."

($1 = 76.950 Japanese Yen)

(Reporting by Mayumi Negishi and Chikafumi Hodo; Editing by Joseph Radford and Chris Gallagher)

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