The Otemachi One Tower building in Tokyo, Japan.
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The offering size in the initial public offering of SBI Shinsei Bank could exceed 360 billion yen ($2.39 billion), including overallotment, with Norinchukin planning to buy shares, according to two sources familiar with the matter.
The IPO of SBI Shinsei Bank, a unit of SBI Holdings, will include the sale of new and existing shares and is due to launch as soon as today, the sources said.
Reuters is reporting the potential size of the offering and Norinchukin’s plan to buy shares for the first time.
Norinchukin, which aims to collaborate with SBI Shinsei Bank, is looking at buying shares worth up to some 5 billion yen, the sources said.
SBI Shinsei Bank and Norinchukin did not respond to requests for comment. The sources declined to be named as the information is not public.
SBI Shinsei Bank is targeting a valuation of roughly 1.3 trillion yen in the IPO, the sources said.
Norinchukin, which is unlisted, is the principal financial institution for Japan’s farm, forestry and fishery cooperatives and generates returns primarily through securities investments rather than lending.
It is a major player in global markets and in recent years has become one of the world’s largest investors in collateralised loan obligations (CLOs).
SBI Shinsei Bank traces its origins to the Long-Term Credit Bank of Japan, which failed in 1998 and was nationalised.
After being acquired by overseas investment funds including Ripplewood, it was renamed Shinsei Bank and relisted in 2004.
The lender became a subsidiary of SBI Holdings in 2021 and was delisted in 2023. It repaid all public funds this year ahead of the IPO.
The IPO follows listings in Japan this year by companies including JX Advanced Metals and Tekscend Photomask.
Reuters reported in June that SBI Shinsei Bank was preparing to relist by year-end.
