The Rakuten Group’s stocks are sluggish, going against the Japanese stock market, which has been in the high price range for the first time in 33 years. Domestic and foreign investors who have participated in capital increases so far have unrealized losses, and there is even the possibility that they will be forced to process impairment losses.
Rakuten G Chairman and President Hiroshi Mikitani
Source: Bloomberg
Japanese stocks continued to rise in June, reaching their highest level since 1990 on the 16th. Trading on the 28th also rose. Rakuten G shares, by contrast, are hitting a 14-year low.
Concern about the dilution of earnings per share increased as a result of the capital increase through public offering in May to rebuild the financial situation, which had deteriorated due to the loss of the smartphone business. Ranked 2nd worst in year-to-date rise/fall rate among Nikkei Stock Average stocks. On this day, it temporarily dropped to 466 yen, which was 1.6% lower.
The issue price for the capital increase disclosed on May 16 is 566 yen per share. In addition to the public offering, CyberAgent and Tokyu underwrote the new shares. In the capital increase announced in March 2021, Japan Post Holdings, a subsidiary of Tencent Holdings in China, and Walmart in the United States acquired shares at 1,145 yen per share. All of these investors have unrealized losses when compared to the current stock price.
At a press conference on the 27th, ahead of the end of the quarter, Japan Post Holdings President Koya Masuda said that he would announce the need for impairment losses on Rakuten G shares after applying them to his company’s accounting rules. . He has an equity stake in the company, and said, “I’m keeping a close eye on the stock price trend.”
Japan Post President Watches Trends in Rakuten G Shares – Falls 20% Since the Beginning of the Year Due to Poor Performance and Capital Increases
Japan Post President Masuda
Photographer: Akio Kon/Bloomberg
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2023-06-28 05:10:48
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