Nikko Salomon Smith Barney was the lead manager of the syndicate. William J. McMorrow, chairman and CEO of Kennedy-Wilson states that the firm is very pleased with the success of Kennedy-Wilson Japan's business and its strong acceptance by the Japanese investment community. Over the last seven years, Kennedy-Wilson Japan has built a powerful position in the Japanese market.
With 28,320 shares outstanding, the current stock price of $4,300 gives Kennedy-Wilson Japan a market capitalization of $122 million. Parent company Kennedy-Wilson, Inc. sold 2,500 shares through the IPO. As a result of this sale, Kennedy-Wilson, Inc. retains a 50.5% ownership interest in Kennedy-Wilson Japan.
Kennedy-Wilson will report a financial gain from the sale of its shares in Kennedy-Wilson Japan. This gain will be reflected in the parent company's first quarter earnings report for the year 2002. Based on the closing price of Feb. 19th, the value of Kennedy-Wilson, Inc.'s ownership of Kennedy-Wilson Japan equates to $62 million. Kennedy-Wilson Japan raised approximately $14 million of new capital through its IPO.
According to Richard Mandel, president of Kennedy-Wilson's commercial group, the IPO will allow Kennedy-Wilson Japan to take advantage of a growing number of investment opportunities surfacing in Japan because of the government's restructuring of the economy and banking industry.
Over the past seven years, Kennedy-Wilson Japan has developed a successful business in real estate investment, asset management, brokerage, and advisory services. The firm is one of the most active investors in office properties and non-performing loans in Japan and also owns a loan servicing company called Pacific Servicing.
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