November Confirmed For Giant Japan Post IPO

The Tokyo Stock Exchange has given the green light to Japan Post’s initial public offering later this year, and in doing so has set up an enormous share sale that Japanese brokers estimate will breach the ¥1.4 trillion mark.

The sprawling government-owned company has over 24,000 offices across Japan along with its insurance and banking units.

Japan Post Holdings last week announced forecasted earnings estimates for the year ending in March 2016 of ¥370 billion, down 23.3 percent from the previous year. The numbers have highlighted what some analysts see as the need to improve the efficiency and earning capabilities of the group.

The IPO of such a deep rooted traditional service oriented government institution has raised some hopes that Japan by privatising what could be considered the world’s biggest bank might boost investor sentiment and stimulate efforts to cut the reams of red tape in Japan’s famously officious economy.

Reports in the Japanese media have stated that the Japan Post Bank Co stock would be priced at ¥1,350 yen per share, while the insurance and bank divisions would be listed at ¥1,400 yen and ¥2,150 yen

Foreign buyers will be offered 20 percent of the offering with the rest for domestic investors Japan Post said last week.

The group’s mail-delivery unit will remain unscathed following heavy social and political pressure to maintain the service including the presence of post offices in the most remote and now sparsely populated villages.

 

 

 

 

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