Sagawa Express Co. is aiming to go public on the First Section of the Tokyo Stock Exchange this year and has started holding talks with major brokerages, sources close to the matter said Monday.
Using the capital it will obtain through the listing, Japan's major parcel delivery company hopes to expand its logistics network overseas through mergers and acquisitions and close in on Nippon Express Co., a top player in the industry, they said.
The total market value could be more than ¥300 billion, they added.
Parent company SG Holdings Co. holds an 80 percent stake in Sagawa Express and will sell part of it but will remain the top shareholder in its subsidiary.
By enhancing its corporate transparency through the listing, Sagawa Express also hopes to improve its corporate image, which has been smeared by a series of scandals, including the indictment of 14 employees earlier this month after it was revealed that a man turned himself in as a proxy for a driver who had received a parking ticket while on duty.
SG Holdings is rapidly expanding its business in Asian countries.
In October, it started a delivery service in cooperation with Hitachi Transport System Ltd. that transports clothing items made in Chinese factories to Japanese customer companies. The two companies have a capital and business alliance.
In November, the holding company completed the construction of a large logistics facility in Vietnam and teamed up with the country's biggest real estate and retail company. It also acquired a courier firm in December.