Hitachi Planning IPO for Its Storage Division
Hitachi said that it is preparing to list the shares of its U.S.-based hard disk-drive unit, Hitachi Global Storage Technologies, on either the NYSE or the Nasdaq. No date yet.Hitachi, the vast Japanese conglomerate buoyed by an improved fiscal Q2 2010 report after several quarters of massive losses, said this week that it wants to break out its storage division into its own entity and set up an initial public offering. The Japan-based multinational, ranked in the world's top 10 IT companies by revenue in 2009, on Nov. 4 reported a group profit of 71.99 billion yen ($893 million) in the period, its fiscal second quarter.
That compared with a net loss of 50.56 billion yen in the year earlier quarter. Operating profit rose more than fivefold to 129.57 billion yen from 25.84 billion yen, while revenue rose 5 percent to 2.35 trillion yen from 2.232 trillion yen.
Hitachi said it would use the funds acquired through the IPO for research and development and other strategic investments.