Japan’s SoftBank Group’s mobile unit has recently cleared a 2.4 trillion yen IPO (initial public offering) and has received a green signal from the Tokyo Stock Exchange. Reportedly, the IPO is said to be one of the biggest ever and will be feeding the company with funds to clear debts and continue to place big bets on innovations that will drive the future technology trends.
According to sources familiar with the matter, SoftBank Corp, the mobile unit, will share issuance on the Tokyo Stock Exchange on December 19, and will be marketed to the Japanese retail investors. They further claimed that the IPO marks the transformation from a mobile phone network provided to one of the biggest technology investors around the globe, under the leadership of Chief Executive Masayoshi Son.
For those uninitiated, SoftBank’s bets have been as diverse as Chinese behemoth such as Alibaba Group to car-sharing company’s such as the California-based Uber Technologies to even small gaming startups.
As reported by the Reuters, the parent company aims to raise USD 21.04 billion (¥2.4tn) through the sale of 1.6 billion SoftBank Corp stocks at a tentative rate of 1500 yen each, resulting into a market valuation of ¥7.18 trillion upon listing. The analysts further predict that the amount could surge by ¥240.6 billion if demand sparks overallotment, which in turn will take the firm closer to the USD 25 billion that e-commerce giant Alibaba raised in the biggest-ever IPO in 2014. SoftBank Group will retain a majority of 66.5% stake in the newly listed mobile unit.
If the industry experts are to be believed, the massive offering comes in the wake of investors who have begun suspecting the outlook for Japan’s telecom sector.
It has been reported that the IPO was initially only expected to appeal to shareholders seeking stability, however, the government’s call on carriers to cut fees and support more wireless network have senT currents of fright through the industry.