Japan’s Rakuten Group is finalising plans to raise about $2.2bn by issuing new shares, according to two people, in the e-commerce company’s latest move to shore up its finances after years of losses from its mobile business.
Rakuten’s board could meet as early as this week to decide on the capital raising, according to one of the people. The public offering is expected to raise roughly $2.2bn but the amount could change depending on Rakuten’s share price, which will influence the pricing of its new equity issuance.
Additionally, Rakuten plans to issue shares to Founder and CEO Hiroshi Mikitani and a fund controlled by the entrepreneur, the person said.
It plans to use the funds to pay down debt and build base stations for its mobile business, the sources said. The deal would mark the latest move by the company, which has already been selling assets and moving to list group units, to raise cash.
