Rakuten Group Inc. has announced it will not proceed with the planned initial public offering of its securities arm, Rakuten Securities Holdings Inc., on the Tokyo Stock Exchange.

The Japanese company initially sought an IPO to stabilize its finances after entering the competitive wireless carrier market.

Although the IPO application was temporarily withdrawn in late 2023 with indications it would be resubmitted, Rakuten has now opted to focus on strengthening its collaboration with Mizuho Securities Co.

This decision comes after Rakuten reported its first quarterly operating profit since 2020 in November 2024.

The improvement was attributed to reduced losses in its mobile segment, which has become profitable except for marketing costs related to customer acquisition.

This information was shared by company founder Hiroshi Mikitani.