business

Japan Post companies net Y1.44 tril in world's biggest IPO this year

14 Comments
By Elaine Kurtenbach

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14 Comments
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Japanese taxpayers should be outraged! The IPO was obviously undervalued. Taxpayers did not get anywhere near full value for their assets. Who profited from from this?

8 ( +10 / -2 )

And, they want to privatise the PO? Are they insane?

-4 ( +0 / -4 )

hey "proxy" and "Disillusioned", reading is so fundamental......

Only 11% of the government’s equity in the three companies was sold.

-7 ( +0 / -7 )

Philly: Perhaps they were looking at the pictures.

-5 ( +1 / -6 )

"Japan Post Insurance shares soared 38.2%"

Even if this is a partial sale, Proxy's point is quite correct, so I am not quite sure why the above two posts are making snide comments about reading ability. Major financial institutions will have been given preferential treatment in registering to purchase. The IPO price was obviously far, far too low, particular for the insurance branch.

These institutions have bought in, sold on immediately (some if not all of their holdings) and made a massive profit. It's not only the institutions who have received a profit windfall. Since bonuses at financial institutions are usually profit linked, there will be certainly specific individuals who will personally make millions in profit-linked compensation. If the IPO had been skillfully priced at fair value, this money, now in the hands of private corporations and individuals, could have been in the Treasury, increasing the amount received from the sale and filling the hole in Japan's deficit.

A fairly set price IPO price, reflecting the value of the business as developed and built up with taxpayer's money, would prevent the companies with preferential access from immediately selling on their privileges for huge gains. But who determines the IPO price? Who is the underwriter? What are their relationships with the companies preferentially signed up to buy the initial offering of shares, who have now walked off with millions in (potential) taxpayer's money?

This undervaluation is known to happen every time major utilities are fully or partially sold off. I wonder why they never get it right? Could it be a conflict of interest? I certainly would not accuse anyone of that without evidence. However, whatever the reason, the transfer of funds from the public to the private sector, something Japan can ill afford.

4 ( +6 / -2 )

Going public is the way to invite more funds for future growth.

Better late than never.

-3 ( +0 / -3 )

Some IPO funds will help pay for rebuilding from the 2011 tsunami disaster.

ie. The biggest slush fund in JP.

4 ( +5 / -1 )

It HAD to be undervalued because privitisations are not meant to maximise the benefit to taxpayers. It was meant to get some money in, but also " incentivise" voters. The government cannot afford for the issue to flop for political reasons, hence a fair price would come at an unacceptable political risk.

I note that there were multiple underwriters so they were making a near risk free bet.

It's very true that the taxpayer has been short changed, but I somehow don't see this being a big headline in news.

1 ( +1 / -0 )

The tax payers who opted individually to subscribe to this IPO will be happy.

Those who didn't subscribe may have had no interest (like myself) but should benefit in future from improved services that come about through privatization.

I considered some JP insurance product in the past, but it was a total scam compared to other similar offerings from private competitors.

0 ( +2 / -2 )

Gaigin Delima: The branch in Bunkyo-ku lost my packages 3 times, with no luck finding them, and they called my friends wife, and told her that her husband had ordered a box of condoms from Amazon, which almost got him divorced. --so much for privacy.

1 ( +2 / -1 )

Taxpayers did not get anywhere near full value for their assets. Who profited from from this?

The same people who have profited at the expense of taxpayers, savers, and workers ever since the LDP got back into power in 2012 and began looting the country.

0 ( +2 / -2 )

Just tell your stockbroker to buy IPO share, Does not sound it will be down quite a while

-1 ( +0 / -1 )

@ThonTaddeo: Yep totally correct, it's all wash and lines the pockets of the LDP via the tsunami fund. You are totally correct when you say looting.

0 ( +1 / -1 )

Saw some segments on TV about the first day of trading. One individual investor had got his hands on 100 shares, and sold off about half of this for a 200,000 yen profit, so far. With 80% of the shares set aside for domestic investors there must have been quite a few people able to "invest" for similarly quick short term profits.

Other individual investors interviewed were sure that the shares will go down in the end.

0 ( +0 / -0 )

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