Panasonic Holdings said it was preparing for a possible initial public offering of its supply chain management business (SCM business), including platform provider Blue Yonder. The company did not disclose an IPO valuation or expected market capitalization, or specify on which exchange it would be listed.
But analysts in Asia have said that if the IPO goes public in Japan, it would reach a market capitalization of at least 1 trillion yen ($7.7 billion), making it the biggest listing since 2018. Panasonic Holdings is expected to be a majority shareholder. of stock, if this occurs.
The fallout from the company’s SCM business was ahead of Blue Yonder’s first quarter results, which showed SaaS (software as a service) revenue jumped 37% year over year. to reach $113 million. A spokeswoman said the capital raised from the IPO “will help fuel Blue Yonder’s next phase of growth and will be used to invest in Panasonic Group’s supply chain activities, particularly R&D. , mergers and acquisitions and talent”.
“With the introduction of the operating company system, the Panasonic Group aims to enhance its competitiveness by enabling each operating company to act more independently and implement in-depth self-management,” Panasonic said. in a press release. “Subsequently, it was decided that based on the characteristics of the business and the market environment, a public listing of the SCM business would be the optimal way to accelerate global growth using the capital markets.”
By way of background, Panasonic said that over the past few years, “the external environment surrounding the supply chain has changed significantly and is becoming more complex due to recent geopolitical uncertainty, the pandemic and changes in consumer behavior”.
“Furthermore, as the expected needs of enterprises for supply chain management solutions increase and its market is expected to grow rapidly, the competition for R&D strengthening and M&A investment has become fiercer in this area,” the company said. “Against this backdrop, the company believes that investments executed with agility will enable it to expand the areas in which it can make a positive contribution to society by providing cloud-based SaaS solutions that can be flexibly implemented. and fast to respond to a variety of challenges faced by businesses.