Selection Process: Reconstruction Work and Share Price

selection process: The government expects proceeds of up to 1.4 trillion from the planned sale under its special account budget plan for fiscal 2017 starting in April, but the amount may be reduced to around 1 trillion if share prices slump, according to The Japan Times. The ministry decided Monday to begin a selection process to choose around six brokerages by the end of March to serve as the main underwriters. Sources said the timing will depend on stock market conditions. The government, which owns an 80.49 percent stake in Japan Post Holdings, will sell the shares in several batches through fiscal 2022 to raise around 4 trillion for reconstruction work in the disaster-hit Tohoku region. The share price of Japan Post Holdings dropped below its IPO price of 1,400 after its market debut, as profitability at its two group arms Japan Post Bank Co. and Japan Post Insurance Co. was squeezed by the Bank of Japan's negative interest rate policy. The decision comes as Japan Post Holdings shares have seen a rebound to levels above the public offering price amid a surge in the overall Japanese stock market. (news.financializer.com). As reported in the news.