September 15, 2017 / 8:05 AM / 10 months ago

Strong demand for Japan Post's $12 billion share sale - sources

TOKYO (Reuters) - Demand for Japan Post Holdings Co Ltd’s (6178.T) planned $12 billion (8.95 billion pounds) share sale is solid, contrary to worries of a bleak uptake given the size of the offering, people familiar with the process told Thomson Reuters DealWatch on Friday.

Japan Post's logo is seen at its headquarters in Tokyo, Japan, January 30, 2017. REUTERS/Kim Kyung-Hoon

Overseas investors that account for 20 percent of the sale committed to buying the portion to be allotted to those outside Japan by the end of the first book-building day, said the sources, who did not want to be named as they were not authorised to speak to media.

Demand from domestic investors, who account for 80 percent of the sale, also appeared solid, the sources added.

Fund managers had feared a tepid reception due to the sheer size of the offering announced on Monday and worries over the business’ limited growth.

Shares of Japan Post are currently trading barely above their 2015 IPO price of 1,400 yen.

The price for the new offering will be set from Sept. 25 to Sept. 27, at a discount of around 2-4 percent compared with share prices during that period.

(This story was refiled to add dropped word ‘for’ in headline)

Reporting by Miho Ozawa of Thomson Reuters DealWatch; Editing by Himani Sarkar

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