TOKYO (Reuters) - Daiwa Securities Group Inc (8601.T) said on Thursday it will lead-manage an initial public offering in China through a local joint venture, making it the first Japanese brokerage to do so.
"Winning a mandate for an IPO in China is a small but important step for Daiwa," said Azuma Ohno, a brokerage analyst at Credit Suisse Securities in Tokyo.
"But compared with what the company is trying to do in Asia, the deal is very small and it needs to do more in the future to achieve its goals."
The firm, Japan"s second largest brokerage behind Nomura Holdings (8604.T), has been looking to ramp up its business in Asia and is the only Japanese broker to have joint venture in the People"s Republic.
Daiwa SSC Securities, a venture between Daiwa and Shanghai Securities, will handle the around 3.5 billion yen ($39 million) IPO for lens manufacturer Shanghai Conant Optics Co, said a spokesman for Daiwa Securities.
Daiwa CEO Shigeharu Suzuki has said his company would deploy more capital in the region and hire more people.
Daiwa"s strategy is in stark contrast to Nomura, which is pushing its global expansion through the purchase of the Asian and European operations of Lehman Brothers (LEHMQ.PK).
Daiwa Securities Capital Markets, Daiwa"s investment banking arm, formed the joint venture with Shanghai Securities in 2004.
Daiwa owns 33 percent of the venture, with the rest held by Shanghai Securities.
(Additional reporting by Antonita Madonna Devotta in Bangalore; Editing by Gopakumar Warrier and Joseph Radford)
Deals
No comments:
Post a Comment