- $11.6 billion sale will be Japan's biggest IPO this century
- Banks will have to sell bulk of shares to retail investors
Nomura Holdings Inc. and Mitsubishi UFJ Morgan Stanley Securities Co. will lead Japan Post Group’s 1.4 trillion-yen ($11.6 billion) initial public offering, with responsibility to sell almost half the stock, people familiar with the matter said.
Nomura and Mitsubishi UFJ Morgan Stanley will be responsible for the greatest share of the domestic offering, each selling about 25 percent of that tranche while the other banks will handle less than 10 percent apiece, according to the people. The two lead banks will be asked to each sell about 24 percent of the stock reserved for international investors, the people said, asking not to be identified as the information is private.
Japan Post Holdings Co. said Thursday it won stock-exchange approval to go public along with its banking and insurance units, setting the stage for the nation’s biggest IPO this century. Based on indicative prices, the three companies will have a combined market value of about 13.7 trillion yen when they list Nov. 4, more than Japan’s largest bank.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. share the role of joint global coordinator on the three offerings with Nomura and Mitsubishi UFJ Morgan Stanley. Daiwa Securities Group Inc., SMBC Nikko Securities Inc. and Mizuho Securities Co. are also among banks working on the share sales.
The proportions of stock to be sold by each bank are preliminary and subject to change, according to the people.
Some 80 percent of the shares will be offered to domestic investors and 20 percent abroad, a filing to the Finance Ministry showed. Goldman Sachs and JPMorgan are also selling about 24 percent of the overseas portion, the people said.
Spokesmen for Nomura, Morgan Stanley, Goldman Sachs and JPMorgan declined to comment, as did Japan Post.
At least 70 percent, or about 1 trillion yen, of the offering is expected to target Japanese individuals, people with knowledge of the matter said this week, fitting with Prime Minister Shinzo Abe’s plans to encourage households to invest more of their savings.
Nomura, Japan’s largest brokerage, has recently demonstrated its ability to sell large stock offerings to Japanese people. The Tokyo-based firm exclusively sold 500 billion yen of shares in Toyota Motor Corp. to individuals in July. It’s receiving 22.5 billion yen in fees from Toyota in the quarter ending Sept. 30, according to Bloomberg calculations based on a regulatory filing made by the automaker.
In more than 1,600 IPOs in Japan since 2000, underwriters were paid about 4.4 percent in fees on average, data compiled by Bloomberg show.