Japan Airlines shares up in grey market trade ahead of listing
TOKYO (Reuters) - Shares of Japan Airlines Co Ltd (9201.T) were up as much as 6 percent compared to their initial public offering price in unofficial trading on Tuesday, ahead of the airline's September 19 public listing, traders said, signaling strong demand for the stock.
One trader said the Japan Airlines shares were bid at 4,010 yen each on the grey market, 5.8 percent above the IPO price at 3,790 yen, which was at the top end of an indicated price range.
Another dealer said he had heard of a grey market price of 4,000 to 4,015 yen.
The IPO will raise 663 billion yen ($8.47 billion), nearly double the 350 billion yen injected by a Japanese government-backed fund following the airline's failure with $25 billion in debts in early 2010.
The fund, the Enterprise Turnaround Initiative Corporation of Japan (ETIC), is selling its 96.5 percent stake in Japan Airlines in the IPO, which ranks second this year behind the $16 billion offering by social network Facebook Inc (FB.O). ($1 = 78.2900 Japanese yen)
(Reporting by Dominic Lau; Editing by Muralikumar Anantharaman)
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