Rakuten Bank to Debut After Japan’s Largest IPO Since 2018
Rakuten Bank, a subsidiary of Japanese e-commerce giant Rakuten Inc., is set to debut on the Tokyo Stock Exchange on April 21, 2023. The initial public offering (IPO) is the largest in Japan since 2018, and is expected to raise up to $2.3 billion.
Rakuten’s Expansion into Banking
Rakuten Inc. is a Japanese e-commerce company founded in 1997. It is the largest e-commerce company in Japan, and is the fourth largest internet company in the world. In addition to its e-commerce business, Rakuten has expanded into a variety of other industries, including banking.
In 2018, Rakuten acquired a Japanese online bank, and rebranded it as Rakuten Bank. The bank offers a variety of services, including savings accounts, loans, and investments. It also offers a mobile banking app, which allows customers to manage their finances on the go.
Rakuten Bank’s IPO
Rakuten Bank’s IPO is the largest in Japan since 2018. The company is offering up to 1.2 billion shares, with a price range of ¥2,000 to ¥2,500 per share. The offering is expected to raise up to ¥2.3 trillion ($2.3 billion).
The IPO is being led by Nomura Securities Co. Ltd., Daiwa Securities Co. Ltd., and Mizuho Securities Co. Ltd. The offering is expected to be heavily oversubscribed, as investors are eager to get in on the action.
Rakuten Bank’s Growth Prospects
Rakuten Bank is well-positioned to capitalize on the growing demand for digital banking services in Japan. The bank has already seen strong growth in its customer base, and is expected to continue to grow in the coming years.
The bank is also well-positioned to benefit from the increasing demand for financial services from Japan’s aging population. As more people retire, they will need access to banking services, and Rakuten Bank is well-positioned to meet this demand.
Risks for Rakuten Bank
Despite the strong growth prospects for Rakuten Bank, there are some risks that investors should be aware of. The bank is heavily reliant on its parent company, Rakuten Inc., for funding and support. If Rakuten Inc. were to experience financial difficulties, it could have a negative impact on Rakuten Bank.
In addition, the bank is still relatively new, and has yet to prove itself in the competitive banking market. It is also facing competition from other digital banks, such as SBI Sumishin Net Bank and Aeon Bank.
Conclusion
Rakuten Bank is set to debut on the Tokyo Stock Exchange on April 21, 2023. The IPO is the largest in Japan since 2018, and is expected to raise up to $2.3 billion. The bank is well-positioned to capitalize on the growing demand for digital banking services in Japan, and is expected to continue to grow in the coming years. However, investors should be aware of the risks associated with the bank, such as its reliance on its parent company and competition from other digital banks.