Group 1 - Rakuten Group Inc. is considering an initial public offering (IPO) for its credit card subsidiary in the U.S. stock market, leading to a significant stock price increase of 6.7%, the largest since April 10 [1] - A spokesperson for Rakuten stated that the company is exploring various fundraising strategies but has not made any decisions regarding the latest media reports [1] - Rakuten's stock closed up 4.7% in Tokyo after retracting some gains, with a 12-month performance increase of approximately 5%, underperforming the Topix index, which rose by 17% [1] Group 2 - Rakuten is a comprehensive technology and internet company based in Japan, with e-commerce and fintech as its dominant sectors, including core business units such as Rakuten Ichiba, Rakuten Card, Rakuten Bank, and Rakuten Mobile [2] - Recent financial activities of Rakuten have been closely related to its fintech subsidiaries and mobile business financing, including capital cooperation with Mizuho Group in securities and credit cards [2] - It is important to note that Japanese Rakuten and South Korean Lotte are distinct entities, with the former focusing on a tech/e-commerce and fintech ecosystem, while the latter is a diversified industrial conglomerate [2]

Core Viewpoint - Rakuten is considering an initial public offering (IPO) in the United States for its credit card business, which is one of Japan's largest, amid rising competition and market dynamics [1][2]. Group 1: IPO Considerations - The potential U.S. IPO of Rakuten Card was influenced by rival SoftBank's plans to list PayPay in the U.S. [2] - The discussions regarding the IPO are in early stages, with alternative options including a stake sale to a strategic buyer [1][2]. Group 2: Business Valuation and Stake Acquisition - Mizuho Financial Group acquired a 15% stake in Rakuten Card for 165 billion yen ($1.1 billion), valuing the business at over 1 trillion yen ($7 billion) [3]. - Institutional investors anticipate a baseline valuation of 2 trillion yen for PayPay, with expectations that it could exceed 3 trillion yen during its IPO [3]. Group 3: Importance of Credit Cards to Rakuten - Credit cards are central to Rakuten's business model, which includes online shopping, banking, and travel services, allowing customers to earn loyalty reward points [4]. - Rakuten Card has issued over 30 million credit cards in Japan, with a non-GAAP operating profit growth of 20% to 62 billion yen last year, although it faced a 4.5% decline in the April-June quarter of this year due to increased costs [6]. Group 4: Market Context - The global IPO market is experiencing a resurgence, with the U.S. market having its busiest quarter since Q4 2021, raising $24 billion through first-time share sales in Q3 [7].