Rakuten plans to issue 100 million shares to raise $1.5 billion for debt payment and investment

Rakuten will be conducting its secondary offering with 100 million shares worth $1.5 billion aimed at paying debts and further investments. The company acquires FXCM Hongkong and continues to transform its organization to prepare for global competition.

Rakuten new shares will consists of 100 million units worth $1.5 billion to pay debts and invest in network infrastructure and e-commerce upgrades. Its stocks fell by 6% upon the announcement. The new shares will account for 7.5% more from the company's existing shares and will be available in Japan and overseas. Rakuten Inc recently bought Viber Media and Ebates in 2014. This year, the Japanese retailer closed another acquisition deal.

FXCM Hong Kong will be acquired by Rakuten Inc for $36 million to pay debts. Rakuten's first acquisition from FXCM was its Japan business in March following a disposal of noncore assets after FXCM's recent big loss against its retail clients. Swiss National Bank's announcement of the surprise decision to stop its control over Swiss franc surged the currency by 30% compared to euro. The result prompted the New York based company to sell some of its businesses and acquire loans to continue operations. Meanwhile, its acquiring company, Rakuten continues its globalization efforts.

Rakuten has announced a major leap in its effort to transform its organization. Its globalization efforts include conducting all corporate events and communication in English. Rakuten's English only policy resulted to 802.6 points out of 990 in its average employees' TOEIC or Test of English for International Communication. Rakuten's case study offers the importance and the methods in introducing new policies to enhance communication, training and development which boost relationships with global customers and counterparts. This transformation is also a measure of preparation for the company's plans to compete against e-commerce leaders such as Amazon.

Experts admired Rakuten's ability to transform its organization in embracing the English language to prepare for global competition. Its recent offering of new shares is reportedly aimed at paying debts and further expansion.