SBI Sumishin Net Bank to reportedly postpone $1.2bln IPO

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

Japan's SBI Sumishin Net Bank Ltd 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 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 ($1.2 billion), with SBI Sumishin seen raising around 10 billion yen ($0.087 billion), according to filings. The bulk of the sale was to come from SBI Holdings and Sumitomo Mitsui Trust Bank selling shares.

SBI Sumishin, along with SBI Holdings and Sumitomo Mitsui Trust Bank, said in a joint statement that the listing procedures would be determined based on an assessment of market movements and other factors.

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% since the start of the year, reflecting the widespread uncertainty that has hit global markets following Russia's invasion of Ukraine.

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%.