Rakuten Group Inc. Considers U.S. IPO for Its Credit‑Card Business

Rakuten Group Inc. (ticker RKUNY) announced that it is exploring a U.S. initial public offering (IPO) for its credit‑card unit, a move that has already begun to influence the company’s share price and market perception. The announcement came after a Reuters report that the Japanese e‑commerce and internet services conglomerate is evaluating a listing of its credit‑card business in the United States.

Market Reaction

Shares of Rakuten rose as much as 6.7 % on the day of the report, marking the largest intraday gain for the stock since April 10. The spike reflects investor enthusiasm for the potential of the credit‑card segment to operate independently and tap U.S. capital markets. The stock closed at ¥964.7 on October 13, 2025, after a period of volatility that had seen it swing between a 52‑week high of ¥1,044.5 and a low of ¥695.

Strategic Rationale

Rakuten’s core operations span consumer‑discretionary services such as online retail, digital content, and financial products, including its flagship “Rakuten Card” and “Rakuten Bank.” By spinning off the credit‑card business, the company aims to unlock value for shareholders, streamline its focus on core e‑commerce and digital media offerings, and create a separate entity that can pursue growth opportunities tailored to U.S. consumers and investors.

The U.S. market presents a broader investor base and potentially higher valuation multiples for credit‑card and fintech businesses. A separate listing would also provide a clearer platform for the credit‑card unit to raise capital, invest in technology, and expand its product portfolio without being encumbered by the broader conglomerate’s diversified operations.

Current Position and Next Steps

While Rakuten has yet to disclose a specific timeline or target valuation, the company’s leadership has signaled serious intent. The company will likely conduct a comprehensive valuation analysis, evaluate regulatory requirements, and engage with investment banks to structure the offering. Should the IPO proceed, it could set a precedent for other Japanese fintech firms contemplating U.S. listings.

Investors and market watchers will now be closely monitoring subsequent filings, regulatory filings, and any partnership announcements that could provide further insight into Rakuten’s strategy and the potential impact on the company’s overall valuation, which currently stands at approximately ¥2.09 trillion.