Internet Initiative Japan Shares Give Encore

Following a long summer of discontent and volatility, Internet Initiative Japan(IIJI Quote), a Tokyo-based Internet services provider, has found itself exactly where it was six months ago.

That was when the company was finally approaching its long-cherished dream of listing its shares on the Tokyo Stock Exchange. IIJ's March quarter had shown it posting its third-straight quarter of rising profits, putting its shares in a strong position for a debut in Japan. Cross-ownership of shares among companies remains more common than in the U.S., so a listing there would help IIJ cement ties with its customers.

Then something odd happened. The Tokyo shares were to be priced according to the level of the Nasdaq shares, which debuted in 1999. Those U.S. shares tripled over a three-week period, right up to the pricing, then plummeted again. IIJ pulled the planned Tokyo offering following what was understandably tepid interest among would-be buyers. ...