Seibu Holdings Inc., owner of Japan's biggest hotel chain, reduced the size of its initial public offering by at least 73 percent with its largest shareholder opting out after investors balked at the valuation.
Seibu is seeking as much as ¥50.1 billion ($491 million) from a sale of 27.8 million shares, according to a filing from the hotel and railway operator Wednesday. They will offer the shares at ¥1,600 to ¥1,800 each, lower than the ¥2,300 indicative price announced last month.
The IPO comes on the heels of poor offerings by Japan Display Inc. and electronics maker Hitachi Maxell Ltd. in March. The Topix index fell 7.6 percent in the first three months of the year — its worst quarterly performance since the second quarter of 2012.