Tekscend Photomask, a Japanese manufacturer of photomasks used in semiconductor production, is preparing an initial public offering in Tokyo that could value the company at about 300 billion yen ($2 billion), according to people familiar with the plan. The company, 50.1% owned by Toppan Holdings and 49.9% by private-equity firm Integral, is expected to seek listing approval from the Tokyo Stock Exchange as early as late September and aims to complete the flotation before year-end. The deal will comprise both newly issued shares and stock sold by existing holders, with Integral slated to trim its stake. Bank of America, Nomura, SMBC Nikko and Morgan Stanley MUFG Securities have been tapped as joint lead underwriters, the sources said. Tekscend would follow memory-chip maker Kioxia in taking advantage of recently loosened marketing rules that allow companies to meet investors ahead of formal approval.