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SoftBank Corp is a Japanese telecommunications company that is part of the conglomerate SoftBank Group Corp. It was founded in 1984 and was originally called Japan Telecom Co., Ltd.
History
2021: Launch of a $3 billion fund to invest in technology startups
On September 14, 2021, SoftBank announced the launch of a $3 billion fund to invest in technology companies. The initiative called SoftBank Latin America Fund II is designed to support projects in Latin America. More details here.
2018: Exit to the exchange: raising $23.5 billion and falling shares by 14.5%
On December 19, 2018, trading in SoftBank Corp. shares began. This IPO turned out to be one of the largest in history, but on the first day the prices of the telecommunications company fell sharply in price.
SoftBank set the IPO stock value at 1,500 yen apiece. By the opening of the Tokyo Stock Exchange, the price fell by 6.4% to 1,404 yen, and at the time of completion of trading, quotes sat by 14.53% and settled at 1282 yen. At the same time, the securities of the parent holding SoftBank Group, which includes the third largest mobile operator in Japan (after NTT Docomo and KDDI), fell 0.91%, CNBC reported.
As part of the listing, SoftBank attracted 2.65 trillion yen (about $23.5 billion), which became the largest IPO in Japan and the second largest in the world. The record still belongs to the Chinese Internet giant Alibaba Group, which in 2014 raised about $25 billion when it entered the exchange.
According to Bloomberg news agency, 90% of investors who purchased shares of SoftBank during the IPO of 1,500 yen were individuals, and only 10% were distributed among investment funds, management companies and other major players.
SoftBank sold 36.85% of the shares in the public market. The proceeds are planned to be invested in the development of innovative projects, including those related to artificial intelligence.
Two events could have a negative impact on SoftBank quotes in the first day of trading: a major failure in the operator's network, due to which a huge number of subscribers were left without communication, as well as the scandal surrounding Huawei, whose equipment was banned in public procurement in Japan. In addition, large debts of the SoftBank Group holding could affect, which by the end of September 2018 were measured at 18 trillion yen ($160 billion).[1]
Notes
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