SmartNews seeks ¥11.2 billion in Tokyo IPO after 80% valuation cut
The deal highlights the struggles of what was once one of the most best-regarded startups in the country.
SmartNews, a Tokyo-based news aggregator app developer, is seeking to raise ¥11.2 billion ($70 million) in an initial public offering (IPO) next month. The company's valuation has been cut by 80% since its latest major funding round in 2021, and it plans to offer 8.1 million shares at an indicative price of ¥1,390 each. Underwritten by Mitsubishi UFJ Morgan Stanley Securities, Morgan Stanley MUFG Securities, and Nomura Holdings, the IPO will open for trading on November 30, with pricing expected on December 7 and trading commencing on December 15.
The lower valuation reflects the challenges faced by SmartNews, once considered one of Japan's most prominent unicorns, as it struggles to justify its former valuation in the face of the growing influence of AI in news consumption.
Brief written by urgent.news from Japan Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
