5 Things About Japan Post’s IPO

5 Things About Japan Post’s IPO


State-owned Japan Post Holdings will list itself and its two financial units—banking and insurance companies–on Wednesday. It is the world’s biggest IPO this year and Japan’s biggest in nearly two decades. Here are five things to know about Japan Post and its IPO.


2 NOV 2015 7:32AM
BY
WSJ STAFF

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In addition to running 24,000 post office branches, parent company Japan Post Holdings operates Japan Post Insurance, the country’s largest insurer–and Japan Post Bank–one of the world’s biggest banks by deposits, with $1.67 trillion.
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2 Nearly $12 Billion


The Japanese government is raising nearly $12 billion from the three share offerings. Previously, the government owned 100% of Japan Post, which in turn wholly owned its postal, banking and insurance units.
REUTERS

3 More Share Sales to Come



The government is selling 11% of each of the three companies–but it plans to sell as much as two-thirds of Japan Post Holdings over time. It also plans to sell up to half of the banking and insurance units in phases as soon as possible, and Japanese law requires them to sell the entire stakes eventually.
KIYOSHI OTA/BLOOMBERG NEWS

4 Financing Reconstruction



Most of the money raised from the current stake sales will be used to help finance recovery efforts after the 2011 earthquake and tsunami.
REUTERS

5 Targeting Mrs. Watanabe



Eighty percent of the shares in Japan Post Holdings will go to domestic investors, while the remaining 20% are earmarked for international investors. The government hopes the offerings will encourage the Japanese public to shift savings out of bank deposits.
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