Japan Display Inc. shares plunged to 25 percent below last month's initial public offering price in Tokyo trading after reporting preliminary earnings that missed its forecasts.
Japan Display fell 16 percent to close at ¥672. That compares with the ¥900 IPO price before the stock started trading March 19.
The maker of screens for Apple Inc. devices said it estimated operating profit of ¥27.2 billion for the year ended March, compared with its earlier projection of ¥30.4 billion.
Customer demand for screens fell at the end of the fourth quarter and price negotiations were difficult because of lower prices for displays used in medium-range smartphones, the firm said. Revenue for the year was estimated at ¥614.2 billion, compared with a forecast of ¥623.4 billion.
"The downward revision is very negative for its share price," Yoshihiro Okumura, a general manager at Chiba-Gin Asset Management Co. in Tokyo, said in a telephone interview. "There is now more uncertainty going into the year ahead."
The firm slumped 15 percent in its first day of trading last month, the worst debut of any Asia-Pacific IPO worth at least $1 billion since 2008.
The company was formed when Sony Corp., Toshiba Corp. and Hitachi Ltd. spun off their panel businesses to state-backed Innovation Network Corp. of Japan after failing to keep pace with South Korea's Samsung Electronics Co.
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