Japan Airlines JAL returned to the Tokyo stock market on Wednesday with just modest gains after a massive $8.5 billion initial public offering IPO. Yet, analysts expect to see strong foreign interest in the carrier, which has turned itself around from bankruptcy just 2-1/2 years ago.
JAL shares rose 1 percent on Wednesday, trading around 3,830 yen in Asia trade – just above the IPO price of 3,790 yen and valuing the entire airline at just under $9 billion, which ranks it alongside Air China Shanghai Stock Exchange: 601111.SS as Asias second biggest airline by market valuation.
Analysts blamed concerns over a territorial dispute between Japan and China for spooking retail investors-who account for 70 percent of the IPOs investors-and dampening what would have otherwise been a strong debut for the stock.
Read the rest of the story: Blue Skies Ahead as Japan Airlines Returns to Market.