Recruit Co To Re List
Recruit Co To Re List
Recruit Co., probably the worlds 3rd largest staffing service company, will list its planned holding company on the Tokyo Stock Exchange or another bourse, probably next fiscal year, more than 20 years after it was embroiled in a stock-for-favors scandal.
The envisioned initial public offering is expected to be huge and could reinvigorate the nation's long-stagnant securities market, according to sources familiar with the matter.
Although the plan for the IPO was explained at a general stockholders meeting Friday, the number of shares to be listed for the planned holding company, Recruit Holdings Co., has yet to be decided, they said.
The company's holding company will be established in October.
The company plans to use the proceeds accruing from the planned IPO to finance its overseas merger and acquisition plans, the sources said.
The firm's employee ownership association currently holds the largest number of shares with a 20 percent stake.
Recruit was founded in 1960 by Hiromasa Ezoe, a University of Tokyo student at the time, and initially placed classified ads in university newspapers.
The company grew rapidly until 1988, when the stock-for-favors scandal erupted. Ezoe was found guilty of granting unlisted shares in one of the firm's subsidiaries, Recruit Cosmos Co., to politicians, senior bureaucrats and business leaders.
In 1992, Recruit came under the aegis of Daiei Inc., a major supermarket chain whose business subsequently declined. This resulted in Recruit shares being sold to investment funds and other entities from 2000 to 2005.
Recruit rebuilt its business by beefing up capital and business partnerships with major advertising companies, TV companies and other firms.
The firm's consolidated operating profits in fiscal 2011 stood at 115 billion yen, up 27 percent from the year before, on revenue of 806.6 billion yen, up 7.2 percent.
Recruit has aggressively expanded its temporary staffing job information and related operations abroad.
Recruit's revenue from staffing services in the domestic market--the company places priority on the Internet--has been on the rise as corporations are hiring more, the sources said.
The ratio of its profits from business operations overseas, on the strength of the purchase of a U.S. staffing company last year, is expected to increase to 20 percent of overall profit this fiscal year.
The company aims to chalk up more than 1 trillion yen in annual revenue in fiscal 2012 for the first time in four business years, according to the sources.
Expectations are high the listing of Recruit will serve as a catalyst for reviving the nation's reeling stock markets, which are beset by the yen's historically high exchange rates and impacts from Europe's sovereign debt crises, the sources said.