Friday, October 13, 2006
Aozora Bank IPOaims to raise $3bn
Aozora Bank IPOaims to raise $3bn
By Michiyo Nakamoto in Tokyo
Published: October 13 2006 03:00 | Last updated: October 13 2006 03:00
Aozora Bank, the last of Japan's former distressed banks to relist, is today due to launch an initial public offering in an effort to raise more than $3bn.
The listing of about a third of the bank, the second largest IPO in Japan after NTT DoCoMo in 1998, would value Aozora at $10bn.
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The bank's leading shareholders - including Cerberus, the US private equity group; Orix, the leasing group; Millea Holdings, the insurance group; and the government - will each sell about a third of their stakes.
Cerberus owns 62 per cent, while Orix and Millea each own 14.99 per cent.
The Japanese government - which owns 457m preference shares, or about 33 per cent when converted into common shares - will also sell a third of its holdings, a person close to the deal said.
The Aozora listing comes as China's Industrial and Commercial Bank seeks to raise $16bn in Hong Kong and $5.8bn in Shanghai in the world's largest IPO.
It also follows some big flotations in Japan, including Nomura Real Estate, which raised Y164.5bn ($1.4bn) this month, and Idemitsu, the oil group, which is expected to raise Y62.3bn.
A banker said: "Japan is still very much flavour of the month." The banker added that the pool of funds available for the Aozora listing would mostly be Japan-focused and therefore different from emerging market funds that would be buying into ICBC.
The Aozora listing would be the first time the Japanese government has participated in an IPO alongside private investors. The government bailed out Aozora, then known as Nippon Credit Bank, in 1998 and sold it to a consortium of investors, including Cerberus for Y101bn in 2000.
Others to benefit from the sale of stakes in distressed Japanese banks include Ripplewood, the US private equity group, which bought the former Long-Term Credit Bank. Ripplewood later sold two thirds of LTCB, re-named Shinsei Bank, raising about Y250bn.
Nikko Citigroup, Morgan Stanley and Goldman Sachs are lead arrangers for the Aozora IPO.
By Michiyo Nakamoto in Tokyo
Published: October 13 2006 03:00 | Last updated: October 13 2006 03:00
Aozora Bank, the last of Japan's former distressed banks to relist, is today due to launch an initial public offering in an effort to raise more than $3bn.
The listing of about a third of the bank, the second largest IPO in Japan after NTT DoCoMo in 1998, would value Aozora at $10bn.
ADVERTISEMENT
The bank's leading shareholders - including Cerberus, the US private equity group; Orix, the leasing group; Millea Holdings, the insurance group; and the government - will each sell about a third of their stakes.
Cerberus owns 62 per cent, while Orix and Millea each own 14.99 per cent.
The Japanese government - which owns 457m preference shares, or about 33 per cent when converted into common shares - will also sell a third of its holdings, a person close to the deal said.
The Aozora listing comes as China's Industrial and Commercial Bank seeks to raise $16bn in Hong Kong and $5.8bn in Shanghai in the world's largest IPO.
It also follows some big flotations in Japan, including Nomura Real Estate, which raised Y164.5bn ($1.4bn) this month, and Idemitsu, the oil group, which is expected to raise Y62.3bn.
A banker said: "Japan is still very much flavour of the month." The banker added that the pool of funds available for the Aozora listing would mostly be Japan-focused and therefore different from emerging market funds that would be buying into ICBC.
The Aozora listing would be the first time the Japanese government has participated in an IPO alongside private investors. The government bailed out Aozora, then known as Nippon Credit Bank, in 1998 and sold it to a consortium of investors, including Cerberus for Y101bn in 2000.
Others to benefit from the sale of stakes in distressed Japanese banks include Ripplewood, the US private equity group, which bought the former Long-Term Credit Bank. Ripplewood later sold two thirds of LTCB, re-named Shinsei Bank, raising about Y250bn.
Nikko Citigroup, Morgan Stanley and Goldman Sachs are lead arrangers for the Aozora IPO.
