KKR engaged Morgan Stanley to support preparations for a potential IPO of Logisteed, the Japanese logistics company it acquired from Hitachi in 2023, according to sources cited by Bloomberg. 

A listing could take place as early as 2027, although deliberations on the structure, size, and exact timing remain in early stages.

KKR delisted the company following the acquisition and has since overseen operational changes at the business, which generated JPY669bn ($4.7bn) in revenue and JPY28bn ($185m) in net income during the nine months ending December 2024. Additional banks are expected to be added to the syndicate closer to the launch.

The move comes amid renewed strength in Japan’s public equity markets, which have seen a 374% year-on-year increase in IPO proceeds so far in 2025, according to Bloomberg data. That momentum has been driven in part by the successful listing of JX Advanced Metals in March. Japan’s Topix index has climbed more than 10% since early April, despite global macro headwinds.

KKR is no stranger to Japan’s listing environment, having previously taken Kokusai Electric public in a JPY100bn ($660m) IPO in 2023—the country’s largest flotation since SoftBank Corp.’s debut in 2018. Both Kokusai and Logisteed were once units of Hitachi, highlighting KKR’s strategy of unlocking value through carve-outs and strategic exits.

While an IPO remains a leading option, sources indicated that KKR may still opt to hold Logisteed longer depending on market conditions, suggesting a flexible approach in timing the exit for optimal returns.

Source: Bloomberg