Rakuten Scraps IPO Plans, Deepens Mizuho Partnership
Rakuten Group Inc. has abandoned plans to list its securities arm on the Tokyo Stock Exchange, opting instead to strengthen its alliance with Mizuho Securities Co.
The decision follows a period of financial challenges for Rakuten, stemming from its foray into Japan's wireless carrier market. In response, the e-commerce giant had planned an initial public offering (IPO) for its securities unit, Rakuten Securities Holdings Inc. However, it withdrew that application in late 2023, citing plans to reapply at a later date.
However, Rakuten's financial performance has improved in recent months, with the company reporting its first quarterly operating profit since 2020. This turnaround is attributed to the profitability of its mobile segment, which is now discounting marketing expenses to attract new customers.
"We no longer plan to list our securities arm on the Tokyo Stock Exchange," said a Rakuten spokesperson. "Instead, we will focus on deepening our partnership with Mizuho Securities Co. to enhance our financial capabilities."
Mizuho Securities is expected to increase its stake in Rakuten Securities, which will provide Rakuten with access to additional capital and resources. The partnership will also strengthen Mizuho's position in Japan's securities industry.