Dec 22 (Reuters) - The Japanese government plans to list Japan Post Holdings Co Ltd IPO-JAPP.T and its banking and insurance units on the Tokyo Stock Exchange in September next year, the Nikkei reported.
The company is expected to announce the initial public offering plans this month and it will submit a preliminary application to the exchange in March, the business daily said.
The company owns Japan Post Bank, Japan Post Insurance and a postal service unit Japan Post.
About 10 percent of each unit’s outstanding shares will be offered in the IPO, the Nikkei said.
Japan Post Holdings’ net assets are estimated at about 14 trillion yen ($116.73 billion).
The three units could rake in 700 billion yen, assuming a price-to-book ratio of 0.5, the Nikkei reported.
The price-to-book ratio is used to compare a stock’s market value to its book value.
The government plans to use the IPO proceeds to finance post-earthquake reconstruction of the country, the Nikkei said. ($1 = 119.93 yen) (Reporting by Neha Dimri in Bengaluru; Editing by Kirti Pandey)