The parent company of Sagawa Express Co., a major parcel delivery service, made a strong debut on the Tokyo Stock Exchange on Wednesday in the country's biggest initial public offering this year.
Shares in SG Holdings Co. opened at ¥1,900 ($16.74) on the first section of the Tokyo bourse, compared with the IPO price of ¥1,620, bringing the company's value to ¥608.3 billion.
Its market capitalization based on the opening price sharply exceeds that of Sushiro Global Holdings Ltd., which was valued at ¥94.1 billion when it was relisted on the bourse in March.
SG Holdings plans to utilize the funds raised to set up a distribution facility in Tokyo. The company is also aiming to expand its business in Asia following acquisitions of distribution companies in Sri Lanka and Vietnam.
With Sagawa Express holding the second largest share of Japan's parcel delivery market, at some 30 percent, after the industry leader Yamato Transport Co., SG Holdings racked up ¥930.3 billion of group operating revenue in the year that ended in March.