Kokusai Electric shares fall 9% on KKR share sale report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 10 2024
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Source: Yahoo Finance
- Kokusai Electric Shares Fall: Shares in Kokusai Electric dropped by 9% in early Tokyo trading following reports that private equity firm KKR plans to reduce its stake in the Japanese chip equipment manufacturer.
- KKR's Plan to Cut Stake: KKR intends to sell about half of its 43% stake in Kokusai to investors, taking advantage of the company's recent strong performance. The chip tool maker will repurchase shares in the market.
- Analyst's Perspective: Analyst Travis Lundy from Quiddity Advisors predicts a potential drop in stock price initially, followed by a possible rally, based on recent offerings with buybacks.
- Kokusai's Market Capitalization and Performance: Kokusai had a market capitalization of around $8.5 billion at the previous day's closing price and has seen a 75% increase in shares year-to-date.
- Investor Interest in Chip Equipment Manufacturers: Investors are supporting chip equipment manufacturers like Kokusai due to expectations of improved margins and growth opportunities in technology sectors such as artificial intelligence.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
