Softbank is close to executing an important strategic step. The IPO of its mobile subsidiary will be effective in December. The company gets rid of establishing the usual price range, opting to set the value of the public offer of sale at 2.41 trillion yen (18, 5 million euros). The Japanese technology giant plans to sell shares for 1,500 yen each. It is the first time that a title will be released in the stock market without a range. Softbank CEO Masayoshi Son and his bankers are confident in their ability to assess demand, said Bloomberg. A low-price IPO would generate less cash for the company, which could see the stock increase when the negotiation begins on December 19.
On the other hand, an overvalued operation would carry the risk of leaving unsold shares on the table. Softbank has ensured that the final price can still be adjusted. The Japan group’s telecom subsidiary covers wireless, broadband and fixed line services, and has 34 million mobile subscribers. By attracting funds, Softbank will be able to focus on growing through new investments, instead of reducing its indebtedness. The conglomerate led by Masayoshi Son has become one of the largest investors in the world. Softbank is a partner of large heavyweights in the technology sector, such as Uber.
The Japanese telecommunications giant earned 840 billion yen between April and September, eight times more than a year earlier thanks to the return of the group’s investments in technology companies. The Japanese company raised its operating profit by 62.4% to 1.4 trillion yen. Also, its sales stood at 4.65 trillion yen, which translates into a growth of 5.5% compared to the first half of its previous year. The performance of the Venture Capital Fund Vision Fund, which Softbank launched at the end of 2016, was noted in this period (146.7 billion yen). It is one of the strongest funding companies in the field of technology and telecommunications, as well as mobility, with Uber and Singaporean Grab two prominent players in which the fund has injected capital.