Ohara sets tentative IPO price

Japanese optical glass producer Ohara Inc., set a tentative price range of between JPY 4,200 and JPY 4,700 a share for its book-building exercise of 3.2 million shares in its initial public offering.

Japanese optical glass producer Ohara Inc., set a tentative price range of between JPY 4,200 and JPY 4,700 a share for its book-building exercise of 3.2 million shares in its initial public offering. The company is set to start trading on the Tokyo Stock Exchange on 21 October 2005. At this price range, the newly offered shares will carry a price/earnings ratio of between 12.9 and 14.4 times the company“s projected earnings per share of JPY 325.64 for the fiscal year ending 31 October 2005. The book-building, which commenced on 5 October, will conclude on 12 October 2005. The fixed offer price will be announced 13 October 2005 based on the results of the book-building. In the book-building process, the offer price of an IPO is based on actual demand for shares among institutional investors. Underwriters build a “book” by accepting orders from fund managers, who indicate the number of shares desired and the price they are willing to pay.