Japan Post priced at top of range in year's biggest IPO

posted on October 27, 2015

The government raised the maximum 1.44 trillion yen sought in the privatization of the nation's postal service and its banking and insurance units.

Shares of Japan Post Holdings Co. were priced at 1,400 yen, the top end of a marketed range, a Finance Ministry filing showed Monday. Its two financial units were also offered at the highest price a week ago.

The three-pronged IPO is the world's biggest since Alibaba Group Holding Ltd. in September 2014, as Prime Minister Shinzo Abe fulfills a plan first drawn up by his mentor and predecessor Junichiro Koizumi 10 years ago.

Almost 80 percent of the shares are being sold to individuals as part of Abe's goal of getting households to invest more of their savings.

Japan Post Holdings had been offered at 1,100 yen to 1,400 yen a share. It will list on the Tokyo Stock Exchange on Nov. 4, along with Japan Post Bank Co. and Japan Post Insurance Co.

Market rebound

Investor orders for the shares in the three companies exceeded the number being offered after the first two days of bookbuilding, people with knowledge of the matter said earlier this month.

Demand for the shares has been strong as Japan's stock market rebounds from a slump stemming from China's equity selloff in August. The Nikkei 225 Stock Average has gained 3.5 percent since the sale plans were announced on Sept. 10.

About 11 percent of the three companies will be sold in the IPO, which is Japan's biggest since NTT Docomo Inc. in 1998 and the country's largest privatization since Nippon Telegraph & Telephone Corp. in 1987.


source by japantimes
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