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SoftBank's landmark IPO for mobile business hits $23.5B

SoftBank has priced its IPO for its mobile business at 1,500 yen ($13) for each share
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The offering falls just short of the biggest IPO to date - the $25bn listing four years ago of the Chinese e-commerce giant Alibaba

The Japanese tech company SoftBank Group Corp (TYO:9984) (OTCMKTS:SFTBY) is raising 2.65 trillion yen ($23.5 billion) by listing its mobile business in what will be Japan’s largest initial public offering in its history.

SoftBank has priced its IPO at 1,500¥ ($13) for each share and thanks to robust demand, the company will also sell another tranche of 160m shares, according to published reports which cite regulatory filings. 

The offering falls just short of the biggest IPO to date, which is the $25bn listing four years ago of the Chinese e-commerce company Alibaba.

READ: SoftBank selling entire Flipkart stake to Walmart

The tech company, which runs a tech private equity fund worth almost $100bn, will use the proceeds from the deal to plow money into start-ups.

CEO Masa Son is looking to establish SoftBank’s position as an international investor in tech companies by taking the mobile group public and dividing the company into two halves.

SoftBank’s nearly $100bn Vision Fund, which is heavily funded by the Saudis, is invested in an array of companies, ranging from startups such as Slack to well-known tech companies such as Uber and Alibaba.

Roughly 90% of the shares being auctioned off as part of the IPO are being reserved for retail investors, which encouraged the company to engage in an advertising campaign to drum up interest.

Shares in SoftBank’s mobile group are set to start trading in Tokyo on December 19.

Contact Ellen Kelleher at [email protected]

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