TOKYO, April 13 (Reuters) - Japan's antitrust regulator
on Thursday said it had admonished the brokerage unit of Mizuho
Financial Group for pushing startups to accept
underpriced initial public offerings (IPO).
The warning comes as Japan's Fair Trade Commission (FTC) has
been targeting price-setting procedures to address concern that
IPOs can be underpriced to increase the chance of share prices
jumping on trading debuts to the benefit of brokerage clients
but at the cost of startups.
The regulator said a statement that Mizuho Securities "could
have been abusing its superior bargaining position" as lead
underwriter in persuading two startups to accept IPO prices
deemed low by third parties.
Mizuho has already taken improvement measures, according to
the regulator.
(Reporting by Makiko Yamazaki and Ritsuko Shimizu; editing by
Jason Neely)
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