Japan’s SoftBank Group has won approval to conduct a 2.4 trillion yen (US$21.04 billion) initial public offering (IPO) of its domestic telecoms business, Reuters reports.
The IPO, which will be one of the biggest ever worldwide, will provide the Japanese conglomerate with funds to pay down debt and continue placing big bets on tech startups globally.
SoftBank Group aims to raise 2.4 trillion yen through the sale of 1.6 billion SoftBank Corp shares at an tentative price of 1,500 yen each, the report said, citing a filing with Japan’s finance ministry.
The amount could rise by 240.6 billion yen if demand triggers an overallotment, taking the total closer to the US$25 billion that Alibaba raised in 2014 in the biggest-ever IPO.
The final IPO price will be determined on Dec. 10.
SoftBank Corp will list on the Tokyo Stock Exchange on Dec. 19 with an initial market value of 7.18 trillion yen – about 1 trillion yen above that of rival KDDI Corp, which has about 10 million more subscribers, according to the report.
The parent will retain a stake of around two-thirds, depending on the overallotment.
More than 80 percent of the shares will be offered to domestic retail investors, a source with knowledge of the matter told Reuters.
– Contact us at [email protected]