Reuters: Global Markets: Japan Airlines gets small bump up in return to market

Reuters: Global Markets Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Japan Airlines gets small bump up in return to market Sep 19th 2012, 00:31 Tweet Share this Email Print Related News BOJ may mull easing as Fed move spurs yen; Tokyo threatens FX action Fri, Sep 14 2012 Nikkei strikes three-week high; Fed euphoria lifts cyclicals Fri, Sep 14 2012 Nikkei hits two-week closing high to near key 9,000-mark Wed, Sep 12 2012 Japan Airlines sets IPO at $8.5 billion in sign of strong demand Mon, Sep 10 2012 Related Topics Hot Stocks » Asian Markets » Japan Airlines aircraft are seen on the tarmac at Haneda airport in Tokyo September 10, 2012. Credit: Reuters/Toru Hanai By Nathan Layne TOKYO | Tue Sep 18, 2012 8:31pm EDT TOKYO (Reuters) - Shares of Japan Airlines Co Ltd (9201.T) rose about 2 percent on their return to the stock market on Wednesday as investors flocked to the once-bankrupt carrier due to attractive valuations and industry topping profits. JAL's stock was trading at 3,865 yen as of 0016 GMT, above the initial public offering price of 3,790 yen, and valuing the company at about $9 billion - ranking it alongside Air China Ltd (601111.SS) as Asia's second-biggest airline by market value. The stock first traded at 3,810 yen on the main board of the Tokyo Stock Exchange. Everything about JAL's collapse and revival has been big. Its $8.5 billion IPO is the world's second-largest this year after social networking giant Facebook Inc's (FB.O) $16 billion offering. Its $2.5 billion operating profit in the past business year was the highest in the airline industry. Its balance sheet, saddled with $25 billion in debts when it failed in January 2010, has been scrubbed clean. While the outlook for the former national flag carrier remains fraught - a mature home market, more competition from budget carriers and a shaky global economy that could dent its international expansion plans - investors appear willing to take a bet on its prospects. CLSA Asia-Pacific Markets initiated coverage on the airline with a 'buy' rating, citing a lower cost base relative to local rival All Nippon Airways (9202.T) and attractive valuations. At the current price, the stock trades at a price-to-earnings ratio of about 5.5, around a third of ANA's and the industry average. The Enterprise Initiative Corporation of Japan, a state-backed fund that injected 350 billion yen into Japan Airlines in 2010, sold its entire 96.5 percent stake in the IPO, generating around a $4 billion profit for national coffers. (Reporting by Nathan Layne and Dominic Lau; Editing by Ian Geoghegan) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions