Japan wants millions of its citizens to buy shares in the country’s dominant postal & financial group under an $11.5 billion IPO now fixed for November 4.
Japanese retail customers will be the main target of what is likely to be the world’s biggest privatisation this year, rather than institutional investors at home and abroad. About 80% of Japan Post shares will be reserved for sale within the country, and about 90% of them are scheduled to be sold to private individuals.
Under plans revealed late last week, shares in the parent company Japan Post Holdings will be sold in a package together with those of Japan Post Bank and Japan Post Insurance, rather than separately. The shares sold will represent about 11% of the share capital of each of the three companies, with the parent company valued at about $50 billion.
The Japanese government aims to gradually sell off more tranches in the three companies over the next few years, reducing state ownership of Japan Post Holidays to about one third. Japan Post not only runs the country’s postal network but is above all one of the largest financial institutions with extensive banking and insurance services.
The bulk of the proceeds are destined to be used for rebuilding buildings and infrastructure destroyed by the devastating tsunami in 2011.
