Japan’s JX Advanced Metals files IPO application in Tokyo

Japan’s biggest oil refiner Eneos Holdings is spinning off its metal unit, JX Advanced Metals (JXAM), saying on Tuesday JXAM has applied for a listing on the Tokyo Stock Exchange to improve focus on their respective areas of expertise.

The market capitalization of JXAM is expected to exceed 700 billion yen ($4.7 billion), making it a larger listing than Tokyo Metro, one of two subway operators in Japan’s capital, which is due to list on Oct. 23, Nikkei business daily said.

Eneos and JXAM have been preparing for the initial public offering (IPO) of the metal unit since May 2023, stating that it is the best way to promote the sustainable growth of corporate value for both companies.

The listing will enable Eneos to make swift investment decisions needed to transform its business portfolio to realize the energy transition, they said in a joint statement.

JXAM aims to enhance corporate value by establishing a management structure for its specialized materials business, enabling rapid decision-making and optimizing capital based on business needs, they said.

The metal unit has shifted its focus from mining and smelting to supplying advanced materials, focusing on semiconductor parts, after massive impairment losses from its investment and operation of the Caserones copper mine in Chile.

“The listing will allow us to accelerate capital investments in competitive areas like semiconductor materials and advanced materials,” a spokesperson said.

The metal company, which retains a 30% stake in Caserones, plans to remain in mining and smelting to secure essential metals, including rare metals like tantalum, needed to produce advanced materials, the spokesperson said.

JXAM aims to outpace market growth through technological differentiation and market creation in the advanced materials sector, it added.

The company will need approval from the TSE following a listing examination by the Japan Exchange Regulation.

“We can’t comment on the potential size of market capitalization or the timing of the listing,” the spokesperson said.