Ichiyoshi Securities : Announcement on Discontinuance of Underwriting Business
March 08, 2022 at 12:21 pm IST
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(Press release on March 8, 2022)
(English translation for reference purposes only)
ICHIYOSHI SECURITIES CO., LTD.
Listed on: Tokyo Stock Exchange (1st Section)(Stock code: 8624)
President & Representative Executive Officer: Mr. Hirofumi Tamada
Enquiry to: Mr. Takatoshi Kawai, Manager of Public Relations (Tel: 03-4346-4512)
Announcement on Discontinuance of Underwriting Business
Today on March 8, 2022, the Board of Directors of Ichiyoshi Securities Co. Ltd. (the Company) resolved to discontinue the securities underwriting business for the reasons mentioned below.
Reasons for discontinuance:
The Company is proceeding with its "Decisive Action on Reform" initiated two years ago as its first reformative action in 20 years to further promote its customer-focused business operations and build a "Name-brand Boutique House in Finance and Securities
Industry" as its management goal.
In order to more powerfully advance its "Decisive Action on Reform," the Company has decided to discontinue the underwriting business, which has been underperforming and losing its relative weight, towards the end of December 2022 and further specialize in financial asset management business which has medium- to long-term potential for higher growth.
Concentrating the Company' management resources, such as the customer-advising capability of Ichiyoshi Securities Co., the research capability of Ichiyoshi Research Institute and the asset-management capability of Ichiyoshi Asset Management, on its advisory services towards high-networth individuals, domestic and foreign institutional investors, financial institutions and corporate clients, the Company will continue to make its utmost efforts to build a "Name-brand Boutique House."
Outline of discontinued underwriting business:
Content of business: Securities underwriting business
Commissions from underwriting business (for the fiscal year ended March 31, 2021)
Commissions from underwriting and solicitation to specified investors: 496 million yen (A)
Consolidated operating revenue:
1
18,270 million yen (B)
over (B) = 2.7%
Schedule for discontinuance:
The Company intends to discontinue the underwriting business towards the end of December 2022.
Effect on business result:
The discontinuance of the underwriting business will have a negligible effect on the business result for the fiscal year ended March 31, 2022 and that for the fiscal year ended March 31, 2023. By streamlining management resources through reduction of underperforming operations, the Company believes that the discontinuance of underwriting business will greatly contribute to the enhancement of its group business result and corporate value on a medium- to long-term basis.
Any disclosure-worth news will be announced immediately upon its occurrence.
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Ichiyoshi Securities Co. Ltd. published this content on 08 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2022 06:50:03 UTC.
Ichiyoshi Securities Co., Ltd. is a Japan-based securities company that provides investment and other financial services. The Company is primarily engaged in the purchase, placement, underwriting, offering and agency brokerage of securities, as well as the private offering of securities, among others. Through its subsidiaries, it is involved in the stock-related research and information collection business for small- and medium-sized corporations, the asset management business, the provision of clerical work services and others. The Company is also engaged in the leasing, brokerage and management of real estate and the sale of office supplies, among others.