IPO of Sony's Internet Arm Planned (SNE, NMR)

Includes: NMR, SNE
by: Steven Towns

Reuters reports that Sony Communications Network Corp., a subsidiary of Sony Corp. (ticker: SNE) will have a US$257 million IPO on the Tokyo Stock Exchange in December.

The capital raised from the IPO will be used to expand its fiber-optic services. Sony Comm. Net. (SCN) is best known as the operator of So-net Internet access service.

The shares will begin trading on December 20th on the Tokyo Stock Exchange's Mothers market, which is dedicated for start-up companies. Its shares are expected to fetch a hefty yet not uncommon 320,000 to 340,000 yen a share (approx. $2,675 to $2,840).

Nomura Securities, a subsidiary of Nomura Holdings (ticker: NMR) is the lead underwriter.

Sony had issued tracking stocks of SCN in 2001 but will end the program on Dec. 1st ahead of the IPO so SCN will be able to operate independently of its struggling parent.