Rakuten share price slumps again as $1.5bn share sale announced

Joe Hall
Follow Joe
Rakuten has been dubbed the "Japanese Amazon" (Source: Getty)

Shares in Japanese ecommerce giant Rakuten slumped for a second day on the Tokyo Stock Exchange after the company revealed a $1.5bn (£9.8m) share sale.

Read more: Japans's ecommerce giant drives global rollout

On Thursday Rakuten's share price tumbled over six per cent to its lowest level in two months following the announcement of the public sale of 99.6m shares - 59.7m of which are being issued to international investors - and fell again on Friday by over three per cent.

The sale is expected to raise 188bn yen (£983m), but will also dilute investors' current holdings.

The company, led by Japanese billionaire Hiroshi Mikitani, is hoping to improve its financial standing as it looks to make a number of acquisitions in a bid for global growth.

In a statement today it said: "The company believes that a strong financial standing is needed for Rakuten Group's sustainable future growth in the rapidly changing internet services industry."

Mirroring moves made by Chinese rival Alibaba, Rakuten is making a number of investments in technology firms around the world.

This year it has already spent a combined $98m on New York foreign exchange broker FXCM's Hong Kong and Japan businesses, and made a $300m investment in Uber rival Lyft in March.

Related articles