Wednesday, November 4, 2015

Japan Post IPO: Economically Viable?

Given that every working class Japanese view it as more than a mail / parcel service, does the recent Japan Post IPO prove to be very economically viable?

By: Ringo Bones 

Even though it’s proposed stock listing dates back to when Junichirō Koizumi was still Japan’s Prime Minister, the recent Japan Post IPO managed to create enough Asian stock market buzz that today, November 4, 2015, that Asian stock markets managed to close higher despite of the lingering concerns over the Mainland Chinese economic slowdown. But is the recent Japan Post IPO really economically viable? 

In actuality, every working Japanese see Japan Post as more than just a “mere” mail / parcel service provider. Most of them actually had significant amounts of money deposited and invested in Japan Post that every tenured economist view Japan Post as the “world’s largest commercial bank”. Japan Post’s recent stock listing allowed its shares to surge 1.3 percent higher on the Nikkei Stock Exchange a few hours ago, though eventually, Japan Post hopes to raise 11.6 billion US dollars on the stock market. Not bad given that the Japanese government only sold 10-percent of its stake at Japan Post and most of the stock purchasers are seasoned institutional investors – although it is actually the biggest asset sell-off by the Japanese government of the last 30 years. Could the world’s largest bank eventually grow bigger? 

1 comment:

Michelle said...

Japan Post Holdings opened 1,631 yen per share - 16.5 percent above the IPO price of 1,400 yen. The banking unit started at 1,680 yen, up almost 16 percent from its IPO price, while the insurance unit was 33 percent higher. That compares with a rise of 1.3 percent for the benchmark Nikkei 225 index.