29 september 2020
11:53
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22 years after the Japanese mobile operator NTT Docomo has signed for the largest IPO ever, the largest buy-out offer in Japanese stock exchange history follows.
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NTT Docomo was in the history books for years because it went public in 1998 and raised 18.4 billion dollars. At the time, that was the largest IPO ever worldwide. Only nine years later, in 2007, the Chinese Industrial and Commercial Bank (ICBC) broke that record with an IPO in Shanghai and Hong Kong. Since 2014, Alibaba ($ 21.8 billion) has been number one in the IPO ranking, a position that Jack Ma wants to take over with the payment specialist Ant Group in October.
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In the late 1990s, mobile telecommunication was a stock market hype worldwide. In addition, Docomo was the first to experiment with 3G. 22 years later, main owner Nippon Telegraph & Telephone (NTT) wants to fully recruit his mobile subsidiary again. NTT owns 66 percent of NTT Docomo and, at a price of 3,900 yen per share, offers a 30 percent premium to Monday’s closing price on the remaining, public shares.
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NTT sent out a press release about the offer on Tuesday after the close of the market, but on Monday evening the Japanese business newspaper Nikkei had already reported about it as usual.
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Deposits doubled
The offer is worth 4,000 billion yen ($ 38 billion), which accounts for the largest buyout offer in Japanese stock market history. Subscribers to the historic IPO have doubled their investment in 22 years. Those who bought the shares in full euphoria in 2000, still have more than 50 percent loss.
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