Japan’s government raised 1.44 trillion yen ($12 billion) from the IPO, the largest since Alibaba Group Holding Ltd. in September 2014 and Japan’s biggest state asset sale since 1987. The privatization is part of a wave that includes Britain’s Royal Mail Plc in 2013, Italy’s Poste Italiane SpA last month and potentially China’s postal savings bank next year.
Biggest listing in Japan since 1987.
IPO a key step in Abe’s growth strategy.
First-time share investors get first-day boost.
Shares priced cheaply to ensure happy debut.
Japan Post IPO to Shift Focus to Property Portfolio With offering looming, postal service develops more of its vast land holdings.
Japan Post Bank May Shift Some of Its Investments to Stocks.
Also, like other postal services, Japan Post has a major asset to back it up as it adapts to the enormous technological changes in the ways that people communicate and move goods: a vast real-estate portfolio.
Japan Post Bank is also considering allocating money to alternative investments such as private equity and U.S. real estate investment trusts.
The holding company was priced at 1,400 yen in the IPO, the equivalent of 0.41 times the book value of its assets. Japan Post Bank Co., the nation’s biggest holder of deposits, was priced at 1,450 yen, or 0.47 times book value, less than the average of about 0.7 times at Japan’s three biggest lenders. Japan Post Insurance Co., the nation’s largest insurer by assets, was priced at 2,200 yen, or 0.67 times book value.
Japan Post Bank has a market value of 7.5 trillion yen based on early trading Wednesday, making it the nation’s second-biggest bank, ahead of Sumitomo Mitsui Financial Group Inc.
For Prime Minister Shinzo Abe, facing questions over the effectiveness of his Abenomics economic revival plans, the IPO could be an uncomfortable bellwether if it does not create a new generation of shareholders. Some 75 per cent of the stock has been earmarked for individual Japanese investors, who now have a chance to buy a chunk of the most dependable brand in Japan, with a yield, at just over 3 per cent, far better than leaving the money in the Japan Post Bank.
About 10 percent of each Japan Post company’s shares were sold to the public, raising about 1.4 trillion yen, in the largest privatisation of a Japanese state-owned firm since that of Nippon Telegraph and Telephone Corp in 1987.
One of the company’s greatest advantages is its nationwide network of 240,000 Full-time staff work for Japan Post, another 150,000 part-time.
In February, Japan Post announced its first overseas acquisition with the $5.0 billion takeover of Australia transport logistics giant Toll Holdings.
($1 = 1.3887 Australian dollars) ($1 = 121.0400 yen)