Dentsu pushing ahead with IPO on November 30

<p>TOKYO: Dentsu, Japan's largest agency, is proceeding with plans to </p><p>list its shares on the Tokyo Stock Exchange on November 30 despite the </p><p>country's deteriorating economy, plunging profits of major clients and </p><p>declining billings. </p><p><BR><BR> </p><p>The desire of Dentsu's two main shareholders, Kyodo News and Jiji Press </p><p>to unload part of their holdings is believed to be the main reason why </p><p>the offer is going ahead. </p><p><BR><BR> </p><p>The agency will offer 25,000 new shares, while existing shareholders </p><p>will sell 110,000 at between Y380,000 and Y400,000. About 20 per cent of </p><p>shares on offer will be reserved for international investors. After the </p><p>IPO, almost 10 per cent of the agency will have been sold to the </p><p>public. </p><p><BR><BR> </p><p>The offer is expected to raise up to Y10 billion (US$82.5 </p><p>million) against Y200 billion originally envisaged. Brokers said the </p><p>shares were priced cheaply enough to make them attractive to individual </p><p>Japanese buyers. </p><p><BR><BR> </p><p>Investors are expecting Dentsu to unveil a growth strategy. Since large </p><p>domestic market share gains are thought unlikely, growth will need to </p><p>come internationally. However, analysts are unconvinced that Dentsu's 20 </p><p>per cent stake in Bcom3 will make it a driving force in that </p><p>relationship, which has so far failed to deliver significant gains in </p><p>either the US or Europe, key regions where Dentsu is weak. </p><p><BR><BR> </p>