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Recruit said to plan Tokyo initial offer as early as October

Bloomberg news is reporting that Recruit Holdings Co., the Japanese provider of staffing services, plans an initial public offering on the Tokyo Stock Exchange as soon as October, people with knowledge of the matter said.

The Tokyo-based company will seek a valuation of more than 1 trillion yen (&pound5.8 billion), the people said, asking not to be identified because the information is private. Recruit plans to file its IPO application with the bourse as early as June, one of the people said.

“Investors will be watching closely the way Recruit expands their global staffing operations and the other pillar of their business, information services,” Yasuhide Yajima, chief economist at NLI Research Institute in Tokyo, said by phone. “Recruit has been offering a wide range of information to meet consumers’ demand.”

Recruit seeks to list after Japan went from being the best-performing major stock market in 2013 to the worst this year as the effect of Prime Minister Shinzo Abe’s economic stimulus measures fades. Initial public offerings in the country have raised $6 billion this year, up from $2.1 billion for the same period in 2013, data compiled by Bloomberg show.

Yuri Ito, a Tokyo-based spokeswoman for Recruit, declined to comment on the IPO. The Nikkei newspaper reported details of the company’s share sale plan earlier today.

Recruit’s core human-resources business, founded in 1960, offers temporary staffing and permanent placement services to companies in Japan and overseas. Those operations contributed 52 percent of Recruit’s 1.05 trillion yen revenue for the year ended March 2013, according to its earnings report.

The company, led by 50-year-old Chief Executive Officer Masumi Minegishi, also provides Internet-based information services on topics including travel, real estate, weddings, education and dining. It had about 25,000 employees at the end of March 2013, according to its website.

Recruit’s earnings before interest, taxes, depreciation and amortization rose 13 percent to 170 billion yen in the year ended March 2013, according to its financial statement. Net income jumped 92 percent to 71.8 billion yen.

By Shigeru Sato and Yuki Yamaguchi


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