Business / Corporate

Recruit seeks ¥197 billion in IPO to fund deals

Bloomberg

Recruit Holdings Co. and its owners are seeking as much as ¥197 billion in an initial public offering to fund acquisitions.

The Tokyo-based company and existing investors are offering 63.6 million shares at ¥2,800 to ¥3,100 each, it said in a filing with the Finance Ministry on Monday.

Recruit said earlier this month it planned to sell shares at an indicative price of ¥2,800.

Recruit, led by Chief Executive Officer Masumi Minegishi, offers temporary staffing and permanent placement services to companies in Japan and overseas. It also provides Internet-based information services on topics including travel, real estate and weddings.

The IPO includes an over-allotment option of an additional 5.398 million shares, an earlier offer filing shows.

Recruit, founded in 1960, grabbed unwanted international attention more than a quarter century ago when it was embroiled in a political-donation scandal that brought down the government of Prime Minister Noboru Takeshita. At the center of the storm were charges of shares for favors tied to the IPO of a Recruit unit.

A 1990 court ruling established that shares of Recruit Cosmos Co., a real estate unit, were distributed as bribes before it went public. The ensuing public disenchantment with the money-raising practices of the dominant ruling Liberal Democratic Party helped to usher in a period of political realignment that for a time saw the LDP lose power.

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