Sony spinoff of financial unit soars in Tokyo listing

Sony Financial Group Inc surged in its Tokyo debut yesterday after a rare spinoff-listing by Sony Group Corp, which is sharpening its focus on its entertainment and image sensor businesses.

- YASUTAKA TAMURA

The reference price for Sony Group's financial unit was set at ¥150 last week, which translates into a market capitalisation of about ¥1 trillion ($6.7 billion). The shares opened at ¥205 and rose as much as ¥210 on their first day of trading.

The insurance and banking operator is the first direct listing in the country in more than two decades and is seen as a test of how companies can improve valuations through spinoffs and listing businesses. This is also in line with the reform push made by the government and the Tokyo bourse with the nation's economic ministry even encouraging companies to reconsider business portfolios with tax breaks for spinoff transactions.