Japan Post IPO Sets Record With US$12b Share Sale

Japan Post has raised US$12 billion in a long-anticipated initial public offering (IPO) with shares jumping 20% on their trading debut on November 4 after the world's biggest stock sale this year.

Even after its successful privatization it is expected that Japan Post's mail volumes continue to shrink  -  company courtesy
Even after its successful privatization it is expected that Japan Post's mail volumes continue to shrink - company courtesy

Japan Post Holdings said its shares had been priced at the relatively cheap price of 1,400 yen (US$11.50) a piece. Domestic investors have been able to buy 80% of the shares, while the remaining 20% were earmarked for international investors.
The triple listing raised a combined 1.43 trillion yen (US$12 billion), putting it on track to be the biggest stock sale globally this year and the largest since China's e-Commerce giant Alibaba set a record with a US$25 billion IPO in 2014.
The three-pronged IPO, which was oversubscribed within days of going on sale last month, was mostly sold to Japanese individuals as part of Prime Minister Shinzo Abe’s efforts to urge people to invest more of their savings.

Last major privatisation
Most of Japan Post’s profit comes from its two financial units, which the government plans to eventually divest entirely. The holding company has been shifting the focus of its postal services to logistics and e-commerce-related express delivery activities, because of the continuing decline in its mail activities.
Earlier this year, Japan Post acquired Australian logistics provider Toll Holdings Ltd. for US$4.7 billion.
Japan Post, which runs 24,000 post offices nationwide as well as one of the world’s biggest banks, Japan Post Bank, and Japan’s largest insurer by assets, Japan Post Insurance, will likely be the government’s last major privatisation.

Nol van Fenema

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