The Strategist

Japanese IT company Rakuten plans to float shares for $666 mln

02/28/2024 - 09:41

Japanese IT corporation Rakuten Group Inc., a, intends to enhance its financial situation by floating 100 billion yen ($666 million) worth of shares.

These will be unique type shares, the company said in a statement. To prevent capital dilution, the holders of these securities will not be granted voting rights and will not be able to convert them into common shares.

Rakuten intends to pay these shares fixed dividends for a period of five years. The business will have the opportunity to buy back the securities at the conclusion of that time.

The company announces that the shares will be traded on the Tokyo Stock Exchange and made available for purchase on the open market in Japan.

Debt repayment is one purpose for the proceeds from the sale of the securities, according to a statement from Rakuten.

Details and an announcement regarding the scheduled offering's date will be published later.

Rakuten's shares have increased by over 15% over the previous year.



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