Japan's SoftBank steps closer to transformation with mammoth mobile IPO

14 November, 2018, 22:26 | Author: Sammy Rose
  • One risk for the IPO is a damaging price war among Japan's mobile operators

SoftBank Group Corp.'s mobile phone unit said Monday that it will be listed on the Tokyo bourse next month, as its parent company seeks to raise up to 2.6 trillion yen ($23 billion) by offering the mobile unit's shares in what could be the biggest-ever initial public offering in Japan. Softbank's telecom and mobile operation has always been the company's bread and butter, and spinning it off will give Son room to further position himself as a tech kingmaker.

"By spinning off the mobile unit, we have a company with relatively stable cash flow on one hand and a big private equity fund on the other", said a top executive at one of SoftBank's major creditor banks. The company needs to cut down mobile bills to comply with new government requests.

The final IPO price will be determined on December 10, and SoftBank will list on the Tokyo Stock Exchange on December 19 with an initial market value of ¥7.18-trillion - about ¥1-trillion above that of rival KDDI, which has about 10-million more subscribers. Citing the prospectus, Bloomberg said the company will offer 1.6 billion shares at 1,500 yen a piece, or roughly $13. Japanese households are commonly seen as an attractive target in IPOs with their 1,829 trillion yen in financial assets, even if they are traditionally risk-averse with over 50 percent of assets in cash and deposits.

"The dividend payout ratio is very high", said Masahiko Ishino, an analyst at Tokai Tokyo Research Center.

Banking industry sources have said SoftBank's wide brand recognition should also prove popular with individual investors, including those new to stocks. SoftBank's bets so far have been as varied as small gaming startups, ride-hailing firms such as Uber Technologies, and e-commerce behemoth Alibaba Group Holding.

Investors have grown nervous about the lack of clarity in some of the investments by the $90bn Vision Fund.

China Airshow Witnessed Deals Worth USD20 Billion With 239 Aircraft Sold
Meant as an adversary for the American F-22 Raptor or F-35, the J-20 is China's most recent home-grown stealth fighter jet. A J-20 fighter of the Chinese air force shows its load of long-range missiles at Airshow China in Zhuhai on Sunday.


Oil Crashes After Trump Says Prices Should Be 'Much Lower'
Futures in NY held losses after plunging 7.1 percent in the previous session in the biggest one-day drop in more than three years. It said that it expected "subdued global economic growth" to drive demand even lower than Opec was now forecasting.


Victoria Beckham will watch the Spice Girls in concert
For her awards arrival, just minutes before stepping out in front of photographers, the celebrated designer was getting a quick, risky hair cut-literally in the back of a moving auto .


After the public listing, Softbank Group, the parent, is to hold about 63 percent of the wireless unit.

SoftBank has nearly 34 million wireless subscribers in Japan.

SoftBank forecasts that the domestic telecoms operations, which include wireless, broadband and fixed-line services, will post 700 billion yen in annual operating profit.

SoftBank is known for its investments in tech, many of which are done through its Saudi-backed Vision Fund.

Earlier this month, Son condemned the killing but said he would continue to do business with Saudi Arabia.

The total size of offering could rise by 240.6 billion yen if an overallotment is exercised, taking the total fundraising closer to the $25 billion that Alibaba Group Holding Ltd raised in 2014 in the world's biggest-ever IPO. SoftBank will maintain at least 60% ownership of the domestic telecom business.

Recommended:

  • Rouhani says new US sanctions have no effect on Iran economy

    Rouhani says new US sanctions have no effect on Iran economy

    In a separate development, the USA granted Iraq a waiver to import natural gas and energy supplies from Iran for a period of 45. In August, the US imposed the first round of economic sanctions on Iran, which mainly targeted the country's banking sector.
    Falcons flop, lose momentum after ugly 28-16 loss to Browns

    Falcons flop, lose momentum after ugly 28-16 loss to Browns

    They do enter the Week 11 bye with the best record of any last-place division team. "But we're a better ballclub than that". Whatever happens against the Cowboys, the Falcons have a variety of issues to correct after watching the film.
    Five Things Learned: Colts-Jaguars (Week 10)

    Five Things Learned: Colts-Jaguars (Week 10)

    NOTES: Marrone said center Brandon Linder will have surgery on his right knee and miss the rest of the season. I hurt more for this team because it's not like you were in the middle of the game where he lost the ball.
  • Death Toll Increases From Camp Fire

    Death Toll Increases From Camp Fire

    Full information about evacuations and road closures is listed on the Cal Fire pages for the Camp fire and the Woolsey fire . California Highway Patrol Chief Brent Newman asked for the public's patience as teams clear affected areas.
    CNN Suing The White House

    CNN Suing The White House

    By contrast, he commonly attacks CNN as " fake news " and has had a particularly adversarial relationship with Acosta. Trump is "very pro-press", and she really doesn't think the First Amendment is "imperiled at the Trump White House".
    Secret Service Said No to WWI Cemetery Visit in France, Trump Says

    Secret Service Said No to WWI Cemetery Visit in France, Trump Says

    But, at the same time , he developed a strong relationship with Trump at a time when many European leaders are keeping a distance. The French president also suggested, in an apparent attack on Trump, that nationalism is a "betrayal of patriotism".
  • Samsung's new Exynos 9820 chip supports 8K video recording and 2Gbps LTE

    Samsung's new Exynos 9820 chip supports 8K video recording and 2Gbps LTE

    The device will feature three rear cameras, including a standard shooter, a wide-angle lens, and a telephoto camera. Samsung will launch its foldable smartphone in March 2019, according to a new report from South Korea .
    Mourning dog waits for 80 days in road where owner died

    Mourning dog waits for 80 days in road where owner died

    A volunteer from a local charity told reporters that they are in the process of reaching out to the dog owner's relatives. Even as others try to give food to the dog to eat, it will run away from strangers and only return after they are gone.
    Myanmar: Bangladesh set to start repatriating Rohingya:The Asahi Shimbun

    Myanmar: Bangladesh set to start repatriating Rohingya:The Asahi Shimbun

    They say soldiers and local Buddhists massacred families, burned hundreds of villages, and carried out gang-rapes. Attacks by Rohingya insurgents calling themselves the Arakan Rohingya Salvation Army preceded the crackdown.
  • Arrests made in two looting incidents as Woolsey Fire continues to burn

    Arrests made in two looting incidents as Woolsey Fire continues to burn

    Getty A hospital worker embraces her co-worker as they evacuate patients from the Feather River Hospital during the Camp Fire. A mapping flight Friday night at 9:50 determined that the fire had burned 89,906 acres, but it was still spreading.
    Tributes Pour In For Bourke Street Attack Victim Sisto Malaspina

    Tributes Pour In For Bourke Street Attack Victim Sisto Malaspina

    Police and emergency services react to the attack in Bourke Street, Melbourne, that left at least one person dead. There will be a state funeral for Malaspina next week after an offer from the Victorian government.
    Anti-Pelosi Democrats issue warning: She won't have the votes

    Anti-Pelosi Democrats issue warning: She won't have the votes

    Pelosi said it was clearly still needed to educate the public about the impact of more frequent extreme weather events. Ocasio-Cortez, the self-described democratic socialist who ousted veteran Democratic Rep.


Popular

Microsoft Re-Releases Windows 10, 1809 - 30 Month Support Window Starts Today
The clipboard in Windows 10 version 1809 also now permits users to check the clipboard's history , including copied images. Early last month, Microsoft pulled 1809 after it was discovered to be deleting user data for a limited number of users.

Bengals hire Hue Jackson as special assistant to Marvin Lewis
The Bengals fired defensive coordinator Teryl Austin on Monday after a 51-14 blowout loss to the Saints. Jackson spent two-plus seasons with this team, and can basically read them Cleveland's entire playbook.

Real Madrid appoint Santiago Solari as permanent manager
And with 15 goals scored and only two conceded the 42-year-old Argentinian has established the best ever start for a Real manager.

Marine combat veteran kills 12 in crowded California bar
The gunman in the shooting at the Tree of Life Synagogue in October used an AR-15 was armed with an AR-15 and handguns. Dean said the slain deputy was on the phone with his wife before telling her he had to go respond to a scene.

Call after Khashoggi’s killing: ‘Tell your boss mission is accomplished’
Within hours of the "fistfight" story, Saudi officials changed it to claiming he died in a choke-hold during an abduction attempt .

Israeli leader says Hamas begged for cease-fire
Iron Dome missiles intercept rockets from Gaza seen in the sky in Southern Israel, on November 12, 2018. The deal marks an end to the heaviest round of fighting between Israel and Hamas since a 2014 war.

Incomparable $50 mn pink diamond smashes record at Geneva auction
In November of a year ago , the Pink Promise diamond, at nearly 15 carats, sold for $32.5 million at Christie's in Hong Kong. Christie's worldwide head of jewellery, Rahul Kadakia, described it as "one of the world's greatest diamonds".

Boeing Didn't Disclose 737 Safety Problem Before Lion Air Crash
Jon Weaks, president of the Southwest Airlines Pilots Association, told Bloomberg , "We don't like that we weren't notified". We are confident in the safety of the 737 MAX. "Safety remains our top priority and is a core value for everyone at Boeing".

Cowboys look for win streak after saving season in Philly | AP sports
It would have been a lot sweeter for the Cowboys if it had resulted in six points instead of three. The biggest stops came when the Eagles were down seven on their second to last drive of the game.

New Mueller Indictment Expected Soon: Former Infowars D.C. Bureau Chief
He said they dealt with the prosecutors Jeannie Rhee, Aaron Zelinsky and Andrew Goldstein. Roger Stone arrives to testify before the House Intelligence Committee.