New | Japan Post shares soar on trading debut
Tokyo hopes privatising the world's largest bank in US$11.5 billion stock offering will boost the economy
Japan Post shares soared on their trading debut on Wednesday after the biggest initial public offering this year, lifting hopes that privatising what is effectively the world's largest bank will boost Tokyo's faltering growth blitz.
Shares in the vast company - along with its banking and insurance units - were listed on the Tokyo Stock Exchange following an US$11.5 billion share sale, in the largest offering globally since Chinese e-commerce giant Alibaba Group Holding's record US$25 billion offering last year.
The bulk of proceeds from selling shares in the government-owned behemoth, which has about 24,000 offices nationwide, are earmarked for reconstruction efforts after Japan's 2011 quake-tsunami disaster.
Japan Post holds 200 trillion yen in deposits from millions of Japanese households, the equivalent of 40 per cent of the country's gross domestic product.
Tokyo is expected to sell off more of the company to help pay for spiralling social welfare costs in Japan's biggest privatisation since Nippon Telephone & Telegraph's 1987 flotation.
The triple-listing brings with it hopes of drawing more investment to Japanese firms and a lift for Prime Minister Shinzo Abe's faltering bid to kick-start the world's No 3 economy, known as "Abenomics".
Analysts said shareholder pressure would help force Japan Post to speed up its decision-making and control costs, and send a wider message that Japan's notoriously rigid corporate culture was being shaken up.