Japan's SBI Sumishin Net Bank to postpone planned IPO -source (updated)

Sumitomo Mitsui Trust

07/03/2022 02:39

(Adds details and context)
    By Miho Uranaka
    TOKYO, March 7 (Reuters) - Japan's SBI Sumishin Net Bank Ltd
 7163.T  will postpone a planned $1.2 billion 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
 8473.T  and Sumitomo Mitsui Trust Bank  8309.T , 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.  urn:newsml:reuters.com:*:nL1N2V30S4
    The total deal size was expected to be around 132 billion
yen ($1.2 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  .TOPX , the broadest measure of Tokyo
stock performance, is down about 10% 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.  urn:newsml:reuters.com:*:nL3N2V71YS
    Shares of SBI Holdings fell 4.6% by late morning in Tokyo
while Sumitomo Mitsui Trust Bank declined 2.5%. The TOPIX index
was down 3.2%.  
($1 = 114.8400 yen)

 (Reporting by Miho Uranaka
Editing by Chang-Ran Kim, David Dolan & Shri Navaratnam)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805))