An initial public offering by Rakuten Bank Ltd. is set to fetch the company and its parent as much as 116.6 billion yen ($881 million), based on an indicative price range.
(Bloomberg) — An initial public offering by Rakuten Bank Ltd. is set to fetch the company and its parent as much as 116.6 billion yen ($881 million), based on an indicative price range.
The banking unit of Rakuten Group Inc. set an indicative band of 1,630 yen to 1,960 yen per share for its Tokyo IPO on Wednesday. The stock will list on the Tokyo Stock Exchange on April 21, according to a statement.
Almost 60 million shares are being offered in the IPO, with 16% of them being sold by the lender and 84% by holder Rakuten Group. The offering can be upsized by an over-allotment option of about 4.4 million shares, according to terms of the deal obtained by Bloomberg News.
The planned listing is part of a push by the group to expand in financial services. Stiff competition from Amazon.com Inc. has capped its core e-commerce revenues, while aggressive promotions for its mobile unit are saddling the company with losses.
April 13 is the expected pricing date. Daiwa Securities Group, Morgan Stanley, Goldman Sachs Group Inc. and Mizuho Financial Group Inc. are joint global coordinators on the deal.
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