In recent years, the momentum of work-style reforms and the acceleration of ICT in education have increased attention on companies that handle office supplies and ICT-related equipment. Against this backdrop, Lion Office Products Co., Ltd. has been approved for listing on the Tokyo Stock Exchange Standard Market. In this article, we will provide an overview of the company, details of its offering, considerations regarding stock performance, and the unique aspects of this IPO for investors.
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Company Overview and Business Activities
Lion Office Products Co., Ltd. was formally established in 1921, with roots tracing back to 1792 when it originated as a stationery merchant. Its headquarters are located in Nakano, Tokyo, and the current president is Mr. Toshiyasu Takahashi.
The company’s core business revolves around the manufacturing and sales of stationery, office supplies, office furniture, and equipment. In addition, it is engaged in office environment design, construction, and interior work. It also provides ICT devices for the educational market, supplying schools and municipalities with products and offering network installation and maintenance services.
Moreover, Lion Office Products operates an e-commerce platform called “Navilion”, which strengthens its online sales channels alongside its traditional dealer and wholesale networks. This hybrid approach enables the company to adapt to digitalization while maintaining established sales routes. A key characteristic of the company is that it combines both manufacturing and trading functions, with a particular strength in public-sector projects and educational ICT fields.
Offering Overview at the Time of IPO
Securities Code: 423A
Listing Market: TSE Standard
Industry: Wholesale Trade
Expected Price: 209 yen
Newly Issued Shares: 1,500,700
Secondary Offering Shares: 2,765,700
Over-Allotment: 639,900
Total Offering Shares: 4,266,400
Expected Offering Size: approx. 1.03 billion yen
Estimated Market Cap at Listing: approx. 6.56 billion yen
Tentative Price Range Announcement: September 25, 2025
Book-Building Period: September 29 – October 3, 2025
Final Offering Price Decision: October 6, 2025
Subscription Period: October 7 – October 10, 2025
Listing Date: October 15, 2025
Lead Underwriter: Mizuho Securities
Considerations Regarding Stock Price
The expected price of 209 yen is at a low level, making this IPO accessible even to individual investors who are new to the market. However, several elements will influence how the stock performs.
Firstly, the supply-demand balance is a key factor. With newly issued shares amounting to 1.5 million but secondary offering shares reaching 2.7 million, the ratio indicates a stronger selling intent from existing shareholders than new capital raising. This could weigh on the initial market valuation. The total offering size of over 4.2 million shares is moderate, but it reduces the likelihood of an extreme supply squeeze that sometimes drives sharp first-day price surges.
Secondly, in terms of valuation, the market cap at listing is expected to be around 6.56 billion yen, relatively small compared to other listed wholesalers. While the company shows stable earnings, strong growth momentum is not particularly visible. Thus, it may not stand out as undervalued from a growth investor’s perspective, though the low unit share price may still attract speculative trading.
Thirdly, compared with peers such as PLUS, Kokuyo, and Uchida Yoko, Lion Office Products is smaller in scale and brand presence. However, its ICT-related business for schools and municipalities offers a foothold in a growing market segment supported by government initiatives such as the “GIGA School Program.” This lends stability and potential upside in public sector demand.
In the short term, a moderate premium of around 10–20% above the offering price is possible if market conditions are favorable. Conversely, in a risk-off environment, the stock could struggle to hold above the offering price. From a medium- to long-term perspective, investors may view the company as a defensive stock with stability, rather than a high-growth opportunity.
Unique Aspects of This IPO
One distinctive feature of Lion Office Products is its dual model as both manufacturer and distributor. This allows the company not only to produce its own products but also to handle third-party goods, giving it flexibility in managing production costs and distribution margins.
Another point is the significance of its educational ICT business. The company provides devices and system support for schools and municipalities, making it well-positioned to benefit from national investments in education digitalization. Its track record with public projects reinforces its reputation in this field.
Additionally, the diversification of sales channels adds resilience. While maintaining a traditional dealer and wholesale model, the company has been expanding through its online platform Navilion, which improves efficiency and extends reach.
Finally, the IPO size of about 10 billion yen places it in the mid-tier range, making it approachable for individual investors. However, because it is not a large-cap IPO that attracts massive institutional flows, its stock price may be more influenced by investor sentiment and overall market conditions.
Conclusion
The IPO of Lion Office Products is characterized by stability rather than aggressive growth. Its affordable offering price makes participation easy, while its strength in public-sector projects and educational ICT business provides a solid foundation. However, given that the offering is weighted toward secondary shares and the company operates in a mature industry, it is unlikely to deliver explosive returns.
For investors seeking a defensive and stable addition to their portfolio, this IPO could be worth consideration. Those looking for significant capital gains, however, may need to temper expectations and adopt a strategy that balances short-term opportunities with longer-term risk management.
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