Comprehensive M&A data with integrated detailed company information

Mercari announces billion-dollar IPO
Posted on Tuesday, 15 May 2018 13:52
Japanese unicorn Mercari has been given the green light for an initial public offering in Tokyo that could value the online marketplace application operator at JPY 365.40 billion (USD 3.34 billion).

The business is offering 40.71 million shares, including 18.16 million new stocks and 22.55 million from existing investors, such as GMO Venture Partners, Globis Capital Partners & Co, Global Brain Corporation and East Ventures, among others.

In total, Mercari is expected to raise about JPY 117.60 billion, with securities valued at between JPY 2,200 and JPY 2,700 apiece.

The company offers a smartphone application allowing users to trade used items online; the technology has been downloaded 60.00 million times in Japan and over 30.00 million in the US.

In the States, Mercari’s operations are run by former Facebook executive John Lagerling, who was appointed last year.

Founded in 2013, the group is planning to go public on 19th June and will determine the final price of the shares around 11th June.

Mercari is worth more than USD 1.00 billion and operates in Japan, where large corporations dominate the market.

Reuters observed that funds raised from the stock market flotation are expected to be used to finance overseas expansion, with the group’s chief executive telling the news provider last month that growing its presence in the US is a key part of the company’s strategy.

Mercari has also been building its presence in Europe, starting with the UK, and ensures buyer safety with funds not released to the seller until the item has been confirmed as received by the purchaser.

Unsurprisingly, software publishers have been targeted in 1,428 deals announced globally since the start of 2018, according to Zephyr, the M&A database published by Bureau van Dijk.

The largest such transaction involves SS&C Technologies Holdings acquiring DST Systems for USD 5.40 billion in April.

© Zephus Ltd