Japan's Rakuten Group To Raise $2.2 Billion By Issuing Shares

According to two individuals, Japan's Rakuten Group Inc is finalising plans to raise nearly $2.2 billion by issuing new shares, the e-commerce company's latest step to shore up its finances following years of losses from its mobile division.

Based on one of the persons, Rakuten's board of directors could meet as soon as this week to deliberate on the capital offering.

The IPO is projected to raise approximately 300 billion yen ($2.2 billion), but the amount may vary depending on Rakuten's share price, which may influence the pricing of its new stock issuance.

According to the individual, Rakuten also intends to issue shares to founder and CEO Hiroshi Mikitani and a fund owned by the entrepreneur.

According to the sources, the proceeds will be used to pay down debt and create base stations for its mobile company.

The transaction would be the company's latest endeavour to raise cash, following the sale of assets and the listing of group units.

A Rakuten spokeswoman stated the company could not comment on the matter. According to the spokeswoman, the company is exploring several possibilities about its financial status and has not made any decisions.

If such a decision is made, the company will make an announcement, according to the spokeswoman.

Because the case has not been made public, the sources declined to be identified.

Rakuten announced a 22 billion yen sale of its stake in grocery chain Seiyu to US private equity firm KKR & Co Inc on Friday, just three years after agreeing to buy the shares from Walmart Inc.

It raised approximately $83.3 billion in its banking unit's first public offering last month. It is also planning to float its brokerage division.