{"text":[[{"start":11.93,"text":"A chip company has completed the biggest initial public offering in Japan so far this year. "},{"start":18.234,"text":"Shares in microprocessor designer Socionext rose more than 11 per cent on its Tokyo debut on Wednesday despite market declines. "},{"start":26.839,"text":"The pop is more a reflection of the lack of new listings in the local market than the long-term prospects of Socionext. "}],[{"start":34.95,"text":"The company, which develops customised systems-on-chips, has enjoyed growing demand for its designs amid a boom in the automotive chip market in recent years. "},{"start":45.429,"text":"The gains come even after the shares priced at the top of the marketed range. "}],[{"start":50.97,"text":"This is a surprisingly good time for Socionext to float in Japan, where there has been an 80 per cent decline in funds raised through public offerings this year. "},{"start":60.986999999999995,"text":"This means pent-up demand from investors, who have piles of cash to deploy. "},{"start":66.00399999999999,"text":"The yen fell to fresh 24-year lows on Wednesday, improving the competitiveness of exports. "},{"start":72.372,"text":"That should help Socionext overseas. "}],[{"start":75.96,"text":"The shares remain fairly priced. "},{"start":78.627,"text":"Gains on Wednesday would give the company a valuation of over ￥320bn ($2.2bn). "},{"start":86.357,"text":"Its enterprise value of around 3 times total revenues is less than a third of the industry average. "},{"start":92.774,"text":"It has few rivals at home. "}],[{"start":95.33999999999999,"text":"The outlook for chip designers as a group is less rosy. "},{"start":99.44399999999999,"text":"Recently announced US curbs on China’s access to technology means a cut in demand. "},{"start":105.42399999999999,"text":"The market is saturated. "},{"start":107.49199999999999,"text":"It is dominated by chip designers STMicroelectronics, NXP Semiconductors and Arm. "}],[{"start":114.99999999999999,"text":"There are signs of an inventory glut for lower-end chips. "},{"start":118.97899999999998,"text":"Average contract prices for chips fell as much as 28 per cent in the third quarter on rising levels of inventory. "}],[{"start":126.69999999999999,"text":"That means companies will cut spending on chip designs and production. "},{"start":131.21699999999998,"text":"Sector stocks look set to continue their downward trend. "},{"start":134.822,"text":"This started in March this year. "},{"start":137.25199999999998,"text":"The valuation of bigger, more established peers will become more attractive. "},{"start":142.357,"text":"The conclusion investors should come to is that Socionext’s peer group is expensive, not that Socionext is cheap. "}],[{"start":149.92,"text":""}]],"url":"https://creatives.ftacademy.cn/album/86338-1665585271.mp3"}