Rakuten to take banking business to IPO

Rakuten to take banking business to IPO

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Rakuten Group has confirmed that it is preparing to list its online banking business, Rakuten Bank, for Initial Public Offering (IPO).

Following a board of directors meeting on Thursday 30 September, the company said in order to "continue to grow sustainably in the rapidly changing Internet industry, we aim for a system that enables swift decision-making in each business, while further increasing the capital efficiency of each business, based on the business environment surrounding each business."

As such, Rakuten Bank "believes that through the listing of its shares, it will be possible to carry out management with a more autonomous perspective, and to consider various growth and financial strategies, including its own financing".

The company says it is still committed to developing the Group, especially the FinTech business, post completion of the IPO. In addition, the group will continue to review the organizational structure and capital structure of the company "in consideration of creditworthiness and financial soundness" with the aim of growing the business.

The IPO still requires regulatory approval, that may result in a reorganization or may lead to Rakuten not becoming listed. Therefore, no scheduled listing date has been agreed.

Overview of Rakuten Bank (as of 31 March 2021):

1

Name

Rakuten Bank, Ltd.

2

Head office address

NBF Shinagawa Tower, 2-16-5 Konan, Minato-ku, Tokyo

3

Name and title of representative

Hiroyuki Nagai, President

4

Business outline

Online banking

5

Share capital

25,954 million yen

6

Date of establishment

January 14, 2000

7

No. of issued shares

2,349,484 shares

8

Fiscal year end

March 31

9

Main shareholder and % holding

Rakuten Card Co., Ltd (100%)

10

Business performance and financial position for the last 3 years

Fiscal year (consolidated)

As of March 31, 2019

As of March 31, 2020

As of March 31, 2021

Consolidated Net Assets

129,538

147,682

186,790

Consolidated Total Assets

2,997,205

3,851,733

6,486,841

Consolidated Recurring Revenue

87,720

95,513

103,386

Consolidated Ordinary Income

27,329

27,275

27,581

Profit attributable to owners of parent

19,039

18,960

19,337

Note: Millions of yen, rounded down

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