SBI Shinsei Bank Relisted with 1.42-T.-Yen Market Value

Tokyo, Dec. 17 (Jiji Press)–SBI Shinsei Bank made a comeback to the Tokyo Stock Exchange on Wednesday, fetching the first quotation of 1,586 yen apiece, higher than its initial public offering price of 1,450 yen. Based on the first quotation, the market capitalization of the bank, a unit of major online financial service group SBI Holdings Inc., stood at 1.42 trillion yen, making the stock listing one of the largest IPOs in Japan this year. The stock rose to as high as 1,680 yen before ending the morning session on the TSE’s top-tier Prime section at 1,618 yen. SBI Shinsei Bank is expected to play a leading role in the SBI group’s “fourth megabank” initiative, designed to promote cooperation with regional banks. The bank’s predecessor, Long-Term Credit Bank of Japan, went bankrupt in 1998 and was temporarily placed under state control. It is the bank’s third listing, including during a period when it was under the wing of a U.S. investment fund. The bank became a subsidiary of SBI Holdings in 2021, after it was unable to fully repay the public funds it received from the government to deal with loans that became irrecoverable in the wake of the collapse of the country’s bubble economy. SBI Shinsei Bank was delisted from the TSE in September 2023. In July this year, ahead of the third listing, the bank repaid all of the remaining public funds worth some 230 billion yen using financial resources from SBI Holdings. SBI Shinsei Bank aims to work with regional banks that have received investments from SBI Holdings in offering joint loans. Norinchukin Bank, which has reached a basic business tie-up agreement with SBI Shinsei Bank, will invest in the lender following the listing. U.S. investment fund KKR is also set to provide capital to the bank. END [Copyright The Jiji Press, Ltd.]