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Go IPO · Goldman Sachs · Japan Taxi App · Stock Market
Go, a taxi-hailing app provider, saw its shares surge 21% on its Tokyo Stock Exchange debut, marking Japan's largest initial public offering this year after shareholders raised ¥88.6 billion ($553 million) and achieved a ¥186 billion market value.
This successful debut provides a much-needed tailwind for Japan's IPO market, which has seen only 17 IPOs this year, the fewest since 2011, with total proceeds of ¥144 billion, the lowest since 2022, according to Bloomberg-compiled data. Investors oversubscribed the offering by more than 25 times, with international investors allocated 70% of shares, including commitments from BlackRock, Wellington Management, and M&G Investment Management.
Ikuo Mitsui, a fund manager at Aizawa Securities, stated the company has strong growth and profitability potential. Go projects revenue of ¥40.8 billion for the 12 months ending May 31, a 30% increase from the prior fiscal year, with operating profit expected to rise to ¥7 billion from ¥2.7 billion.
However, Shifara Samsudeen, an analyst at LightStream Research, noted the IPO price of ¥2,400 implies a 29 times price-earnings ratio, suggesting investors wait for a post-IPO pullback, while increased competition and regulatory changes pose potential risks.
