Japan's Rakuten set to raise 294.2 billion yen through share issue 

JAPANESE e-commerce and fintech conglomerate Rakuten Group will raise up to 294.2 billion yen (S$2.9 billion) by issuing new shares, it said on Wednesday (May 24) as it worked to offset the financial impact of losses at its mobile business.

Rakuten will issue 407,045,400 new shares with a green shoe option of up to 61,056,700 shares, along with 74,204,700 shares through allocations to founder and chief executive officer Hiroshi Mikitani, his asset management firm, CyberAgent, and Tokyu Corp .

Rakuten set the price at 566 yen per share, with the offer to launch on May 31. The group’s shares closed down 2 per cent at 584 yen on Wednesday ahead of the announcement.

Mikitani originally outlined plans to become Japan’s fourth major mobile carrier, promising to create a low-cost nationwide network by using cloud-based software and commoditised hardware.

However, the company has spent cash funding the build-out, and analysts have said Rakuten is struggling to take market share from cash-rich incumbents known for high-quality networks.

To raise capital, Mikitani has already offloaded stakes in core businesses and moved to float the group’s securities and banking units. REUTERS