Mercari Inc rose 76% in IPO on Tokyo Stock Exchange

Tinuku - Shares of climbed 76 percent in Tokyo stock market debut on Tuesday morning as investors' strong desire for a rare Japanese unicorn. Shares of Mercari Inc is an e-commerce company founded in February 2013 and currently operating in Japan, the United States, and the United Kingdom has traded on 5,280 yen valuing the company about US$6.5 billion.

A popular smartphone app that allows people to trade used goods online has been downloaded 71 million times in Japan where it has 10.5 million active users. The company expects sales to jump 62 percent to 35.8 billion yen (US$324 million) in this financial year.

Mercari Inc rose 76% in IPO on Tokyo Stock Exchange

The largest IPO in Japan this year has raised US$1.2 billion through the sale of about a third of the shares of Mercari with a majority purchased by overseas investors. The company was profitable at home but made a loss in the United States where it was led by former Facebook Inc ex John Lagerling. The US expansion dragged into a net loss of 4.2 billion yen last year.

The popularity of Mercari is on the rise where the Japanese find ways to buy and sell used goods and join the ranks of companies with consumer savings instincts. This app has outperformed its competitors by focusing on mobile, user-friendliness and offering anonymity to privacy-conscious people.