(Recasts with confirmation, adds share reaction, context)
By Miho Uranaka
TOKYO, March 22 (Reuters) - Japan's Rakuten Group Inc said it was planning an initial public offering (IPO)
of its banking arm next month, in a probable $807 million
listing that would test demand for the e-commerce giant's online
lender amid market uncertainty.
The listing, which was first reported by Reuters on
Wednesday, will represent a hefty cash boost for Rakuten, which
boasts fast-growing fintech units as well as its mainstay
e-commerce platform but has struggled with years of losses from
the cost of building out its mobile phone business.
While global bank shares have been whipsawed in recent weeks
following the collapse of a number of U.S. regional lenders and
the turmoil at Credit Suisse, Japanese banks have so far avoided
disastrous hits and are seen as broadly being able to weather
the storm.
Rakuten plans to sell 53.95 million existing shares of
Rakuten Bank Ltd to both domestic and overseas investors, while
Rakuten Bank plans to issue 5.55 million new shares, according
to regulatory filings. That would value the IPO at 106.8 billion
yen ($807 million), based on the mid-range of the indicative
price at 1,795 yen.
The offering will also include a greenshoe option of 4.46
million shares.
The listing would value Rakuten Bank at around 305 billion
yen ($2.31 billion), according to Reuters calculations.
Shares of Rakuten closed up almost 6%, after Reuters
reported that it planned to list the banking unit as early as
next month, citing sources.
($1 = 132.3100 yen)
(Reporting by Miho Uranaka; Editing by David Dolan and Rashmi
Aich)
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