Here’s an article about the recent action in Internet Initiative Japan (IIJI). The money quote:
On Tuesday, IIJ made another announcement: The price of its Tokyo offering would be based on the closing price of its Nasdaq ADRs on Monday, June 13. That closing price, $13.90, was the ADRs’ highest level in nearly two years. Even more strange, the stock declined as soon as the IPO was priced, dropping 21% the following day.
What an incredible stroke of good fortune this was for IIJ and the venture firms that were selling shares in the offering. The ADRs were trading at $4.50 before the company announced its Japanese IPO. But thanks to the subsequent surge in the stock, the 2,500 shares that IIJ is offering, as well as the 900 being sold by its VC backers and another 500 to cover overallotments, will list at 2,859,886 yen, or $26,200, apiece.
