MUSIC INSTRUMENT MAKER ROLAND CORP. TUMBLES 6% IN TOKYO IPO

Japanese electronic musical instrument maker Roland Corp. fell nearly 6 percent from its initial public offering (IPO) price on its return to the Tokyo stock market on Wednesday, December 16, 2020, about six years after it delisted to undertake structural reforms, Mainichi Shimbun reported.

After marking the second-largest IPO so far this year, Roland finished its first day of trading on the First Section of the Tokyo Stock Exchange at 2,920 yen ($28.20), 5.8 percent below its IPO price of 3,100 yen. The company was valued at 79.8 billion yen at the end of the day.

Its market capitalization based on the opening price of 2,954 yen was 80.7 billion yen, making it the second most valuable company to list this year after Yukiguni Maitake Co., a firm based in Niigata Prefecture producing and selling mushrooms and other food items, which was valued at over 83.0 billion yen.

"It is a tough start but we'd like to earn trust by delivering results," Roland CEO Junichi Miki said in a press conference when asked for his reaction to the stock opening below the IPO price. Miki said demand for its electronic musical instruments such as keyboards and drums has grown during the coronavirus pandemic as more people spend time at home, adding that he expects the music industry to keep expanding internationally.

"Although there are many challenges amid the pandemic, I think the trend of more people enjoying creative activities at home will not change," he said. Roland was delisted from the First Section in 2014 when its reform-pursuing management team took control by completing a tender offer for its shares.

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