Japan: Orion Breweries plans IPO on Tokyo stock exchange

Japan’s fifth-largest beer brewery, headquartered in Tomigusuku, Okinawa Prefecture, announces preparations for an initial public offering (IPO) on the Tokyo stock exchange this September, Asia Brewers Network reported on August 22.

Okinawa-based beer maker Orion Breweries is preparing for an initial public offering (IPO) in Tokyo as early as next month, according to a Reuters report.

The flotation would mark a significant exit for private equity giants Carlyle Group and Nomura Holdings, who jointly acquired Japan’s fifth-largest brewer in 2019 for approximately JPY57 billion (US$386 million).

A successful debut would provide much-needed momentum to Japan’s sluggish IPO market, which has seen limited activity since JX Advanced Metals’ listing in March.

Nomura Securities, SMBC Nikko Securities and Mizuho Financial Group have been appointed as lead underwriters.

The company is expected to announce listing details and offering size in the next few weeks, according to the report, though exact timing remains dependent on market conditions.

The planned IPO comes at a challenging time for Japan’s beer industry, which has faced persistent headwinds from changing consumer preferences and economic pressures.

Major brewers reported a 4% year-on-year decline in shipment volumes for June, as inflation-weary consumers increasingly opt for cheaper alternatives, including low-malt beer and canned cocktails.

Despite broader sector challenges, Orion’s strong regional brand recognition in Okinawa and growing mainland presence could appeal to investors seeking exposure to Japan’s tourism recovery.

Despite being a large, industrial brewery known for its mass-produced lager, Orion also produces a variety of craft beers, such as the “Okinawa Craft Premium” series, which includes IPAs and other styles such as lager and a saison.

Founded in 1957, Orion commands over 50% market share in Okinawa, where its beer has become synonymous with local culture and the island’s tourism industry. The brewer’s flagship brand is Orion Draft. The brewery has expanded beyond its Okinawan roots in recent years, establishing distribution networks across mainland Japan.