Kokusai Electric shares fall 9% on KKR share sale report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 10 2024
0mins
Should l Buy ?
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.
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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.
