Credit card subsidiary plans to go public in the US, Japanese e-commerce giant Rakuten's stock price hits its biggest increase in six months.

In response to media reports that Japanese e-commerce company Rakuten Group Inc. is considering listing its credit card business subsidiary on the US stock market, the stock price of e-commerce giant Rakuten surged by 6.7% in the Japanese stock market on Wednesday, marking its biggest gain since April 10th. Media reports, citing two sources familiar with the matter, revealed that the company is in the early stages of considering an initial public offering (IPO) for its business division in the US. A spokesperson for Rakuten Group Inc. stated that the company had previously announced that it was considering various fundraising strategies, but no decision has been made regarding the latest media reports. According to reports, the management of Rakuten is also considering other options, such as introducing strategic investors. Rakuten's stock price gave back some of its gains in the final minutes of trading in the Japanese stock market, ultimately closing up 4.7% in Tokyo. The stock has risen by about 5% over the past 12 months, significantly underperforming the Japanese stock market benchmark index - the Topix, which has risen by 17% and continues to trade near historic highs. Rakuten Group Inc. is a Japanese technology and internet conglomerate, with a focus on e-commerce and financial technology (FinTech). Its core business units include e-commerce (Rakuten Ichiba), FinTech (Rakuten Card, Rakuten Bank, securities, electronic money Edy, etc.), digital content and communications (Kobo, Viber, Viki), and mobile communication services (Rakuten Mobile). Rakuten's recent financial and asset movements in Japan have mostly been related to its financial subsidiary business portfolio and fundraising for its mobile business, such as its capital cooperation with the Sumitomo Group in securities and credit cards, and adjusting plans for listing various subsidiaries based on market conditions (such as withdrawing the listing of "Rakuten Securities"). Although both are called "Rakuten" in Chinese, the Japanese "Rakuten" and the Korean "Lotte" are completely different. The former is a combination of a Japanese technology/internet e-commerce and FinTech ecosystem with a mobile communication operator, while the latter is a diversified industrial conglomerate originally from South Korea.