SoftBank to raise $23.5 billion from its mobile business IPO

This SoftBank IPO is second-biggest stock market listing after Alibaba, which had raised $25 billion in 2014 at the current exchange rates.

SoftBank will be raising $23.5 billion from the initial public offer (IPO) for its Japanese mobile business, making it the second biggest stock market listing ever after Alibaba.

SoftBank has priced its shared at 1,500 yen or $13 raising a total of 2.65 trillion yen ($23.5 billion), according to reports. Alibaba, where SoftBank has a stake in, had raised $25 billion, at current exchange rates, in 2014 and had priced its IPO at $68 per share.

According to reports, the strong demand from investors for getting a piece in one of Japan’s largest wireless operator prompted SoftBank to increase the number of shares available by 160 million.

The shares of this mobile operator unit will begin trading in Tokyo on December 19.

CEO Masayoshi Son had made the listing of its mobile business as a key priority to reposition the conglomerate as a global technology investor. The transaction will split the company into two, allowing investors to choose between its mobile unit and its tech investments business.

Masayoshi Son has placed major bets to become a leading player in the global technology industry with the launch of the $100 billion Vision Fund last year, which has infused cash into dozens of startups like WeWork and Slack.

In India, SoftBank is one of the major investor in the startup ecosystem. Masayoshi Son recently said that his company would be investing $10 billion in India by 2022, after having invested close $8 billion till now. The Japanese has also got its fingers in a majority of the unicorns in India such as Paytm, Ola and OYO to name a few. In 2018, SoftBank led the $800 million investment in OYO, which is now valued at $5 billion. It has also invested $238 million in PolicyBazaar.

SoftBank has also made big investments in high-profile tech companies like Uber and its Chinese rival, Didi Chuxing.