Japan Post Holdings Co. and its banking and insurance arms will officially file with the Tokyo Stock Exchange as early as late June for approval of their simultaneous listing in October, sources close to the matter said Monday.
The Tokyo bourse will approve one of the biggest stock listings in Japan possibly in late August to launch the final stage of postal system privatization started under a reform law enacted in 2005 under Prime Minister Junichiro Koizumi.
The initial public offering for the three entities is expected to total ¥1 trillion to ¥2 trillion, bringing their total market capitalization to some ¥10 trillion, the most since the ¥8.8 trillion for NTT Docomo Inc. upon its IPO in 1998, stock market sources said.
Once the approval is given, the government will announce the final IPO date, an expected IPO price and the numbers of shares to be offered for the holding company, Japan Post Bank and Japan Post Insurance Co., they said.
The government plans to gradually sell Japan Post Holdings shares until its stake in the company falls to a little more than one-third. The proceeds are to be used to help pay for reconstruction in the Tohoku region following the 2011 earthquake and tsunami.
Japan Post Holdings will sell its shares in the two financial units until its stake in each drops to around 50 percent. The money is to be used for acquiring other companies, financing capital investment and purchasing its shares from the government.
The Japan Post group filed preliminary IPO applications with the TSE in late March.
In preparation for the IPO, its Japan Post Co. unit acquired Toll Holdings Ltd., Australia’s largest logistics service provider, in May. Japan Post Bank named a former chairman of Citibank Japan Ltd. as its president in April.
In the future, Japan Post Co. will try to eliminate its losses on mail and logistics services.