Tokyo raises 1.3 trillion yen from stake sale in Japan Post

Tokyo

JAPAN'S government raised about 1.3 trillion yen (S$15.6 billion) selling a stake in Japan Post Holdings Co, completing the nation's biggest public offering this century.

The 929 million shares were sold to domestic and foreign investors for 1,322 yen apiece, 2 per cent lower than the closing price on Monday, Tokyo-based Japan Post said in a regulatory filing.

That compares with the 2 per cent to 4 per cent discount range previously indicated by the Ministry of Finance.

Almost two years after the company was listed along with its banking and insurance units, Japan is further divesting its ownership partly to fund the reconstruction of areas destroyed by the 2011 earthquake and tsunami in the north-east. Demand for the offering withstood headwinds including the stock's underperformance, losses stemming from a botched acquisition, declining mail volumes, and low interest rates that are…