Japan raises RM48b selling stake in postal post

by BLOOMBERG

TOKYOJapan’s government raised about ¥1.3 trillion (RM48.1 billion) selling a stake in Japan Post Holdings Co, completing the nation’s biggest public offering this century.

The shares were sold to domestic and foreign investors for ¥1,322 apiece, 2% lower than the closing price yesterday, Tokyo-based Japan Post said in a regulatory filing. That compares to the 2% to 4% discount range previously indicated by the Ministry of Finance.

Almost two years after the company was listed along with its banking and insurance units, Japan is further divesting its ownership partly to fund the reconstruction of areas destroyed by the 2011 earthquake and tsunami in the northeast. Demand for the offering

withstood headwinds including the stock’s underperformance, losses stemming from a botched acquisition, declining mail volumes, and low interest rates that are eroding profitability.

Orders from overseas investors were more than double the number of shares being offered to them as of last Friday, while demand in Japan was about 1.5 to two times greater than the domestic allocation, people with knowledge of the matter said before the announcement. About 80% of the offering was made to domestic investors.

Shares of Japan Post closed 1% lower at ¥1,349 yesterday. The stock has slid 3.6% since its November 2015 initial public offering, compared to a 9.6% gain in the benchmark Topix index. — Bloomberg