One of the most closely watched initial public offerings in recent years met strong demand from investors. The shares finished the first day of trading at ¥827, up 58 percent from the IPO price of ¥525 and positioning Shinsei as the nation's sixth-largest bank in terms of market capitalization.

The bank was created from the LTCB, which was nationalized in 1998 following its bankruptcy and sold to a consortium led by the U.S. investment firm Ripplewood Holdings LLC in March 2000.

Criticism has been mounting since it became clear how much the consortium would pocket by selling its 35 percent stake in Shinsei.

The government extended a lifeline totaling ¥7.8 trillion to the bank, and the consortium, which invested ¥121 billion, will earn ¥220 billion by selling part of its stake.

The Japan Times Weekly: Feb. 28, 2004
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