Japan warns underpriced IPOs could constitute antitrust law violation

Economy Society

The Japan Fair Trade Commission on Friday cautioned brokerage firms about the potential violation of the antimonopoly law by underpricing initial public offerings. A JFTC report on IPO prices said public offering procedures should include a scheme to allow the lead underwriter to be changed as necessary, as it finds around 90 percent of newly listed companies say lead underwriters played a key role in deciding their IPO prices. The antimonopoly watchdog also said that it could be a violation of the law for a brokerage firm to prevent other securities firms from taking on the role of lead under...

Kyodo News

Kyodo News Society