An IPO "is
the first sale of stock by a private company to the public". If you already
have shares outstanding, then an offer of further shares is not an IPO. So Citigroup,
pace the
WSJ on Friday, has not really filed for an IPO in Japan: it’s just seeking
a listing there, which is a much smaller deal.
A Japanese listing does make sense for Citi, now that Mrs Watanabe is getting
burned by her carry-trade plays. Japanese retail is a formidable source of liquidity,
and it clearly has a substantial risk appetite. As a result, it’s inevitable
that sooner or later Japanese household savings will make their way into the
stock market, rather than floating around as they do at present mainly in the
bond and FX markets. As a truly global company with a strong presence in Japan
(and, now, a full domestic banking license to boot), Citi is likely to be on
any Japanese investor’s shortlist of stocks to buy.
Besides, Chuck Prince is really
good at looking contrite when he screws up.