Rakuten Group to launch initial public offering (IPO)Rakuten Bank’s public offering price was set at 1,400 yen, with a tentative upper limit of 1,300-1,400 yen. As of March, the maximum price was set at 1,960 yen, but following a demand survey, it was reduced by 30%.
On the 13th, Rakuten Bank disclosed the public offering and selling price in the amended securities registration statement. The listing date is April 21, and the market capitalization is expected to be regarding 238 billion yen.
For Rakuten G, improving its financial structure by raising funds was an urgent issue. The financial results for the previous fiscal year (ending December 2022) announced by the company in February were affected by the loss of nearly 500 billion yen in the mobile business, resulting in an operating loss of 363.9 billion yen, the largest deficit ever. The equity ratio fell to 4% at the end of December.
Rakuten G event held in Tokyo
Source: Bloomberg
Hiroshi Mikitani, president of the company, said at a financial results briefing in February that he would promote IPOs of banks and securities subsidiaries and consider using external capital to secure funding. Rakuten Bank announced in March that its initial IPO would be priced between 1,630 and 1,960 yen, and its market capitalization might reach as high as 333 billion yen.
Rakuten G expects net proceeds of 71.755 billion yen from this sale.
The market capitalization of Rakuten Bank, which has over 9 trillion yen in deposits, may increase in the future depending on the stock price trend following it goes public. A company in the same industry that was listed on March 29SBI Sumishin Net Bank’s public offering price was 1,200 yen, but the closing price on the 13th was 1,659 yen, showing a favorable trend.
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(I added the net amount of Rakuten G in the 5th paragraph.)