SoftBank Group has shifted its focus from being mainly a Japanese telecoms operator to a major investor in global technology startups.
The IPO will be one of the biggest ever worldwide, and will provide the group with funds to pay down debt and continue placing big bets on innovations that Chief Executive Masayoshi Son predicts will drive future tech trends.
The parent is investing in a range of companies globally, including USA wireless company Sprint, British IoT company ARM, Chinese e-commerce giant Alibaba and US ride-sharing service Uber.
Additionally, up to 160 million shares worth CNY 240.6 billion (roughly Rs. 2,52,221 crores) will be offered in an overallotment if demand is strong.More news: UN push for safety of returning Rohingya in Burma
Founded in 1986, initially running software, broadband and fixed-line telecommunications businesses, the company has expanded to become one of Japan's top mobile service providers. SoftBank will still own at least 60% of the business following the listing.
"The domestic market is mature, so growth will be tough".
"Without growth in the top line, and expectations of price competition ahead, one can not be optimistic".
The Tokyo Stock Exchange approved the listing of mobile business unit SoftBank Corp. on December 19, with its estimated market capitalization at 7.18 trillion yen based on the tentative price of 1,500 yen per share.More news: Hate Crimes Spike For Third Straight Year — FBI Report
Son said at the press conference that the mobile company, Japan's third-largest wireless carrier by subscribers, is considering lowering charges after similar plans unveiled by its two bigger rivals NTT Docomo Inc. and KDDI Corp. By comparison, Americans hold 13 percent of their assets in cash and deposits, and 36 percent in stocks. That is well above Docomo's around 57 percent payout ratio expected in the current fiscal year and KDDI's 39 percent.
"That provides an incentive" for investors at the IPO, he said.
SoftBank Founder Masayoshi Son is reportedly seeking $21 billion for the new entity that will be called SoftBank Corp. and begin trading December 19.
WHAT'S NEXT? Nov 30: Indicative price range set Dec 3-7: Book-building period Dec 10: Offering price set Dec 19: Trading starts WHO ARE THE UNDERWRITERS? SoftBank has picked Nomura Holdings Inc., Goldman Sachs Group Inc., Deutsche Bank AG, Mizuho Financial Group Inc., JPMorgan Securities and Sumitomo Mitsui Financial Group Inc. among joint global coordinators.More news: Redskins' lack of lead change is first time in National Football League since 1954