Japan's SBI Sumishin Net Bank to postpone planned IPO: source

[TOKYO] Japan's SBI Sumishin Net Bank will postpone a planned initial public offering (IPO) scheduled for this month due to the market downturn triggered by the war in Ukraine, a person with knowledge of the matter said on Monday.

SBI Sumishin Net Bank, equally owned by SBI Holdings Inc and Sumitomo Mitsui Trust Bank, would have been the first online bank to go public in Japan.

It marks the latest example of an IPO being shelved in markets globally, as investors from Hong Kong to Zurich grow anxious following the events in Ukraine.

The total deal size was expected to be around 132 billion yen (S$1.63 billion), with SBI Sumishin seen raising around 10 billion yen, according to filings. The bulk of the sale was to come from SBI Holdings and Sumitomo Mitsui Trust Bank selling shares.

The IPO had been set for March 24.

SBI Sumishin is set to announce the postponement as early as Monday, the source said, declining to be identified because the decision is not public.

The bank declined to comment on the postponement, which was first reported by the Nikkei business daily on Sunday.

Japan's TOPIX index, the broadest measure of Tokyo stock performance, is down about 10 per cent since the start of the year, reflecting the widespread uncertainty that has hit global markets following Russia's invasion of Ukraine.

Russia describes its intervention as a special operation.

In one recent regional example, the IPO of India's state-run Life Insurance Corp (LIC) is set to be delayed to next financial year due to Ukraine-related volatility, Bloomberg News has reported, citing sources.

Shares of SBI Holdings fell 4.6 per cent by late morning in Tokyo while Sumitomo Mitsui Trust Bank declined 2.5 per cent. The TOPIX index was down 3.2 per cent. REUTERS