Nomura, Goldman vie for Japan Post’s $12.3b IPO mandate

Japan Post. Photo: Bloomberg

Nomura Holdings Inc. and Goldman Sachs Group Inc. are among brokerages that submitted applications to lead Japan Post Holdings Co.’s public offering, said people with knowledge of the matter.

JPMorgan Chase & Co., Mitsubishi UFJ Morgan Stanley Securities Co., UBS Group AG, Bank of America Corp., Daiwa Securities Group Inc., Citigroup Inc. Mizuho Securities Co. and SMBC Nikko Securities Inc. also filed proposals to the Ministry of Finance by the Thursday 3 p.m. deadline in Tokyo, said the people, who asked not to be identified because the details are confidential.

The ministry, which has budgeted for an offering of as much as 1.4 trillion yen ($12.3 billion), will compile a shortlist of firms and hold interviews with promising candidates. An official at the ministry and representatives of the brokerages declined to comment.

The government unveiled its plans to sell a further stake in Japan Post Holdings last month, little over a year after completing the 1.4 trillion yen initial public offering of the postal and financial giant. While the size and the timing of the sale have yet to be decided, Chief Executive Officer Masatsugu Nagato said last month that it may take place in the summer. The ministry will choose six underwriters in March, he said.

Falling Profit

Japan sold stakes in the holding company and its bank and insurance units and listed the three stocks in November 2015, in part to raise funds to rebuild areas stricken by the 2011 earthquake and tsunami in northern Japan. Nomura, Mitsubishi UFJ Morgan Stanley, Goldman Sachs and JPMorgan were global coordinators of the three-pronged IPO, which was the nation’s biggest privatization deal since 1987.

Profit at Japan Post has been falling as demand for mail services wanes and declining interest rates crimp earnings at the banking unit. Net income dropped 23 percent to 297 billion yen in the nine months ended Dec. 31, results showed this week.

Shares of Japan Post Holdings have risen 5.4 percent since the listing. The stock closed 1.4 percent higher in Tokyo on Friday.

The finance ministry remains the biggest owner of the holding company, which in turn is the largest shareholder in the bank and insurer. Japan is seeking to sell two-thirds of the parent by 2022, Nagato said.

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Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.