Economics
Japan Post Pricing Seen Drawing Investors More Than Strategy
- Questions linger over business prospects for postal giant
- Price ranges Wednesday show relatively cheap valuations
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Japan Post Group, preparing a $12 billion initial public offering, is a bank that can barely lend, a postal service in an era of electronic mail, and an insurer in a nation with a shrinking and aging population. So how can it attract investors?
The answer depends on how quickly the state-owned postal giant, whose origins date back to 1871, can unlock the potential from its 296 trillion yen ($2.5 trillion) in assets, 24,000 branches and 200,000 employees. With much of that strategy still in doubt due to regulatory restrictions, Japan Post is offering its shares relatively cheaply, according to price ranges released Wednesday for the sale of its three companies.