GMO Internet Group to Cut Stake in Key Subsidiary via Major Secondary Offering

GMO Internet ( (JP:9449) ) has shared an update.

GMO Internet Group has approved a large secondary offering of 61.5 million shares in its consolidated subsidiary GMO Internet, Inc., to be underwritten by a syndicate of securities firms, alongside a potential over-allotment of up to 13.7 million shares via a greenshoe option. The move is designed to boost the tradable share ratio of GMO Internet, Inc. to meet continued listing criteria on the TSE Prime Market, without changing its status as a key subsidiary.

Following the secondary offering and a new share issuance by GMO Internet, Inc., the parent’s ownership will fall from 91.9% to 58.1%, but the subsidiary will remain central to the group’s core internet businesses. GMO Internet Group expects to book an extraordinary profit at the parent level from the sale, while the impact on consolidated earnings should be limited, and it has agreed to a 180-day lock-up on further disposals of GMO Internet, Inc. shares.

The most recent analyst rating on (JP:9449) stock is a Hold with a Yen3204.00 price target. To see the full list of analyst forecasts on GMO Internet stock, see the JP:9449 Stock Forecast page.

More about GMO Internet

GMO Internet Group, Inc., listed on the TSE Prime Market, operates a broad internet-focused portfolio centered on Internet Infrastructure and Internet Advertising & Media services. Through its consolidated subsidiary GMO Internet, Inc., the group plays a central role in Japan’s digital economy, supporting online businesses and marketing activities across multiple platforms and services.

Average Trading Volume: 362,881

Technical Sentiment Signal: Hold

Current Market Cap: Yen315.6B

For an in-depth examination of 9449 stock, go to TipRanks’ Overview page.