Will Japan Post's Huge IPO Teach the U.S. Post Office to Privatize?

Japan Post went public this week and managed to raise $12 billion, making a national mail carrier responsible for this year's most successful initial public offering. That’s a lot of money at a time when mail is disappearing and the U.S. Postal Service, the world’s largest deliverer of letters and parcels, is awash in red ink.

Much of the American commentary about the Japan Post Holdings IPO has noted how differently the Japanese run their postal service. In 2014, for instance, mail delivery accounted for only 12 percent of Japan Post’s revenue—and 74 percent came from such nondelivery businesses as life insurance sold at 24,646 post offices. Another 14 percent flowed from banking operations. Japan Post sold shares in the three businesses and plans eventually to spin them off as separate companies.