SoftBank considers $18 bn Share Sale for Mobile Business through IPO

Published By : 15 Jan 2018 | Published By : QYRESEARCH

In one of the biggest initial public offering possibly in the past a couple of decades, SoftBank Group Corp., a Japanese telecommunications corporation, has mulled listing its wireless business in Tokyo stock exchange and overseas. The multinational conglomerate seeks to raise at least a US$18 billion (£13.1bn or 2 trillion yen), as stated in the Nikkei publication. The IPO marks one of the biggest technology investments world over in recent decades and will help investors to better value the company and its parent. However, the company made it clear that the listing of its business can be just be one of the potential capital strategies for raising capital.

Domestic and Overseas Business Listing will Bring Massive Investments

Selling the shares may be an option but not yet finalized, confirmed the telecom conglomerate in a statement. This will entail the Group to sell around 30% of the outstanding shares of its subsidiary business to its investors, while retaining a hold over the remaining 70%. Getting in stock market listing in London is one of the tentative ways to further raise investment.

SoftBank Group has a massive range of holdings with significant stakes in UK-Based Chip Designer ARM, U.S.-based Sprint Corp, and China-based Alibaba Group Holding Ltd. The currently planned investment is not alien to its culture; of note, in 2017, the company set up a US$93 billion Vision Fund in collaboration with other investors.

IPO Offering to help in Correct Market Valuation

The Group will use investment to consolidate its shares by buying a number of foreign information technology companies and other similar players having potential growth prospects. The group has a complicated structure, notes market analysts, with the company constantly planning new investments. However, several times its current market value does not truly reflect the value of any of its vast holdings, creating its investors perplexed over its valuation. 

Back To Top