FXStreet (Bali) – The Nikkei 225 has been rising strongly in early trade, with shares from Japan Post Holdings soaring over 17% after a very successful $12 billion initial public offering -three IPOs in total-, with the opening delayed due to strong buying interest in pre-market hours.
It’s all about Japan Post Holdings IPOs today
The Japanese benchmark index is tracking gains seen in Wall Street, where the S&P500 closed up by 0.27%, off its highs of the day though. However, most of the bullish momentum emanates from the jubilant sentiment around the Japan Post Holdings IPO, which has allowed the Japanese government to raise 1.44 trillion yen ($12 billion) from the IPO(s).
Ebullient buying interest by Japanese investors
As Bloomberg reports: “The IPOs were oversubscribed within days of going on sale last month. Almost 80 percent of the stock offered went to Japanese individuals as part of Prime Minister Shinzo Abe’s efforts to urge people to invest more of their savings.” Bloomberg adds that “the government plans to eventually sell all of the bank and the insurer through additional offerings and retain a third of the parent.”
(Market News Provided by FXstreet)