TOKYO: Japanese convenience store operator Lawson Inc is considering listing wholly-owned supermarket chain Seijo Ishii Co, sources said Tuesday.
The Nikkei Business Daily previously reported that Lawson is planning an IPO for Seijo Ishii by fiscal 2023, potentially valuing the company at more than 200 billion yen ($1.59 billion).
However, a Lawson spokesman said the company is considering listing the supermarket business but no final decision has been made, including details on size or timing.
Lawson is one of Japan’s largest supermarket chains with more than 14,500 locations, competing with market leaders 7-Eleven and FamilyMart. It is 50 percent owned by trading company Mitsubishi Corp and also has thousands of stores in mainland China.
A listing of Seijo Ishii would test investors’ appetites for retailers in a country where household spending has been under pressure for decades and is now feeling more pressure from higher import costs and a weaker yen.
However, Seijo Ishii stands out in the retail market. Where most of its competitors focus on price and value, Seijo Ishii has carved a niche for itself by focusing on expensive, imported goods and high-quality domestic products.
($1 = 125.5800 yen)
(Reporting by Chang-Ran Kim, Rocky Swift and David Dolan; Editing by David Goodman)
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