Japan logistics company SG makes market debut

SG Holdings

13/12/2017 08:38

TOKYO, Dec 13 (Reuters) - Shares of Japanese logistics 
company SG Holdings Co  9143.T  rose 17.7 percent on their first 
day of trading on Wednesday after the company launched the 
country's largest initial public offering this year. 
    The bulk of shares sold in the IPO by Kyoto-based SG, better 
known as the parent of Japan's second-largest package delivery 
firm Sagawa Express Co., were held by staff. So most of IPO 
proceeds of 128 billion yen ($1.1 billion) go to an employees' 
shareholding association. 
    "We don't have any major funding needs. We want to attract 
talent by becoming a public company," SG President Tadashi 
Machida told a news conference. 
    SG shares ended at 1,906 yen each, giving the company a 
market capitalisation of more than 600 billion yen ($5.3 
billion). 
    They started trading at 1,900 yen following an IPO price of 
1,620 yen. 
    Asked if the company would pursue a merger with Hitachi 
Transport System Ltd  9086.T , a Hitachi Ltd  6501.T  logistics 
unit, Machida said his company needed more time to consider it. 
    SG has a 29 percent stake in the unit. 
    "We made an alliance in March 2016. I said back then a 
merger was an option," he said. "We would like to spend three 
years in checking synergy before we take the next step." 
($1 = 113.36 yen) 
 
 (Reporting by Taiga Uranaka; Editing by Neil Fullick) 
 ((taiga.uranaka@thomsonreuters.com; +81-3-6441-1813; Reuters 
Messaging:  taiga.uranaka.reuters.com@reuters.net)) 
 
Keywords: SG HOLDINGS IPO/