Upmarket toaster maker Balmuda shares pop 88% in Tokyo debut (updated)
16/12/2020 02:16
(updates share price)
By Sam Nussey and Makiko Yamazaki
TOKYO, Dec 16 (Reuters) - Consumer electronics maker Balmuda
Inc's 6612.T shares popped 88% in their Tokyo stock market
debut on Wednesday, in a vote of confidence in Japan's design
credentials after consumers flocked to its high-end toasters and
fans.
Shares hit 3,630 yen in morning trading, valuing the company
at $270 million.
Balmuda raised $30 million from an initial public offering
(IPO) including overallotment, pricing its shares at 1,930 yen
($18) each - the top of its indicative range.
The startup joins companies like electronic piano maker
Roland Corp 7944.T , which relisted on Wednesday, in a year-end
IPO rush following subdued activity earlier in the year.
"The performance of the IPO market has been extremely good,"
said Masayuki Otani, chief market analyst at Securities Japan.
A minnow compared with peers such as Panasonic Corp 6752.T
and Toshiba Corp 6502.T , Balmuda has been able to charge
premium prices for stripped-down appliances with modern designs.
Its products carry simple names like "The Gohan" rice cooker
priced $400 and "The Toaster" at $225, which uses steam to
promise toast that is crispy on the outside but retains moisture
inside.
The firm's success has been seen as a rejoinder to
established incumbents, which market watchers often accuse of
bloat as the number of functions on new products balloon.
"Balmuda created a whole new market - the high-end toaster.
Everyone realised 'wow, there's a market here' and introduced
their own products," said an executive at a larger rival.
The approach contrasts with compatriot Iris Ohyama, which
offers back-to-basics electronics at low prices, and could give
a sop to retailers lamenting Japanese consumers' thrifty habits.
urn:newsml:reuters.com:*:nL4N2GV0N9
Balmuda recorded operating profit of 1 billion yen ($9.6
million) in the year ended December 2019, a decline of 35% from
a year earlier, from sales of 10.8 billion yen.
($1 = 104.5200 yen)
(Reporting by Sam Nussey and Makiko Yamazaki; Editing by
Christopher Cushing)
((sam.nussey@tr.com; https://twitter.com/SamNusseyRTRS;
+81345632760;))