SBI Sumishin Net Bank, Japan’s biggest IPO target, continues to delay listing. It has been three years since the bank plans to list in IPO. Russia’s invasion of Ukraine significantly weakens the equity capital market. The bank reported that it has put a $1bn float on the backburner due to the invasion’s market condition.
SBI Sumishin runs NeoBank, taking deposits and mortgage loans. The total income is ¥60.2bn. Its net income was ¥13bn, up 33%. The delay marked another biggest record since February 24th this year in Asia Pacific.
Life Insurance Corporation of India also delayed IPO as much as $7.9bn by the end of March, and planned to go back listing in early April this year. IPO listing gets tougher because of the current market and capital condition. SBI Sumishin dealmaker analyzed that IPO issuers are hoping to get high valuation. However, investors face the IPO’s high pricing due to the invasion.
SBI Sumishin is a joint venture with Sumitomo Mitsui Trust Bank, by halves. SBI planned to pre-market the deal but it decided to wait after Japan’s Nikkei 225 Index fell. Banker analyzed that when the market is volatile, an IPO can drive investors’ attention by offering something compelling. The analysis is based on the situation where many firms continue to delay IPO.
ANYMIND Group delayed up to ¥8.7bn IPO due to geopolitical risks. Malaysia’s Top Glove pushed back Hong Kong listing due to equity capital market conditions today. Top Glove, the largest rubber glove market, decided not to rush on Hong Kong listing. Asia Pacific listings are down by 42% from last year. Russia and Ukraine war disrupts not only big deals but also small deals, said ECM banker.
