Business / Corporate

Recruit sets IPO price, market capitalization around ¥1.8 trillion

Kyodo

Staffing service provider Recruit Holdings Co. said Monday its initial public offering price for its Oct. 16 listing on the Tokyo Stock Exchange is set at ¥3,100 per share, with expected market capitalization around ¥1.78 trillion.

In terms of market capitalization based on the initial trading price, Recruit will likely be the second-largest IPO in Japan after NTT Docomo Inc. which listed on the TSE in 1998.

Market capitalization of that size would, as of Monday, exceed those of Nintendo Co. and Mazda Motor Corp.

Recruit set the initial public offering price at the top end of the provisional range between ¥2,800 and ¥3,100. The company said it took into consideration investor demand during the book-building process and recent stock market conditions.

The company plans to use the funds raised through the IPO to invest in information technology systems as well as for mergers and acquisitions.

Besides the staffing service, Recruit, which was established in 1960, has been engaged in various businesses ventures, including publishing information magazines for job seekers.

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