Japan's Eneos Seeks $2.6 Billion in Metals Unit IPO

Japanese oil refiner Eneos Holdings Inc. is planning to raise at least $2.6 billion through the initial public offering (IPO) of its metals unit, JX Advanced Metals Corp., according to sources familiar with the matter. The company aims to capitalize on the current "hot" IPO market in Japan and diversify its business portfolio by focusing on transition technologies and advanced materials.

Eneos' board is set to discuss the IPO at a meeting on Friday, with Chief Executive Officer Tomohide Miyata favoring a sale of 50.1% while others involved in the decision-making process prefer a larger offering of 70%. The company is considering selling up to 70% of JX Advanced Metals, which could potentially raise up to $4.5 billion. This would enable Eneos to make swift investment decisions needed to transform its business portfolio and realize the energy transition.



JX Advanced Metals has shifted its focus from mining and smelting to supplying advanced materials, particularly semiconductor parts. The company has a global market share of 60% in thin metal materials used for manufacturing semiconductors. This strong market position, combined with the company's investment in a new thin-film materials factory in Japan, supports the potential success of the IPO.

Eneos' IPO for its metals unit aligns with Japan's energy transition agenda, which includes reconsidering its stance on nuclear power and exploring green hydrogen. By diversifying into transition technologies and advanced materials, Eneos aims to contribute to Japan's energy transition while maximizing the value of the IPO.

In conclusion, Eneos' planned IPO for its metals unit, JX Advanced Metals Corp., is well-positioned to capitalize on the current "hot" IPO market in Japan. The company's strategic focus on transition technologies and advanced materials, combined with its strong market position in semiconductor materials, supports the potential success of the IPO. By diversifying its business portfolio and aligning with Japan's energy transition agenda, Eneos aims to maximize the value of the IPO while contributing to the country's sustainable energy future.