Japan Post Holdings has raised Y592bn ($4bn) through the sale of Japan Post Bank shares, marking the largest stock sale in Japan since 2023, reported Bloomberg.
This move is part of Japan Post’s ongoing privatisation strategy, aiming to reduce its stake in the bank below 50%.
Go deeper with GlobalData
The sale, priced at Y1,444 per share, marks a 2% discount from the previous closing price.
The share sale, including an over-allotment option, involved 410 million shares, as stated in a finance ministry filing.
As per a term sheet released last month, Japan Post had initially planned a discount range of 2% to 4% for the sale.
Japan Post’s decision to sell part of its bank unit shares is also intended to enhance the bank’s management flexibility.
The funds raised will be used for growth investments in logistics, improving shareholder returns, and enhancing capital efficiency.
Goldman Sachs, JPMorgan Chase, Daiwa Securities, and Nomura Holdings were among the banks facilitating the sale.
Japan Post Bank’s recent financial performance showed mixed results.
For the nine months ending 31 December 2024, ordinary income decreased by Y23.9bn year-on-year to Y1.91tn.
However, interest income rose by Y228.3bn, reaching Y1.26tn. The bank’s other operating income dropped by Y1.6bn to Y3.1bn.
Ordinary expenses reduced by Y98.1bn to Y1.46tn, although interest expenses increased by Y96.7bn, amounting to Y607.3bn.
General and administrative expenses decreased by Y9.7bn to Y689.6bn.
Net ordinary income rose by Y74.1bn, reaching Y441.2bn, fulfilling 76.7% of the full-year earnings forecast.
Net income attributable to the parent company increased by Y45.0bn, totalling Y308.3bn, achieving 77% of the full-year earnings forecast of Y400bn.
