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SoftBank Corps shares decline 14% on their first trading day, but it is still one of the largest stock market introductions ever – TechCrunch

SoftBank Corps initial public offer started today with a blow before breaking into a bang and the stock fell 14.5 percent during its first trading day on the Tokyo Stock Exchange. The company is the mobile unit of conglomerate SoftBank Group, whose holding also includes Sprint and $ 100 billion Vision Fund. Shares in SoftBank Corp opened at 1 463 yen, below the 1 500 yen the company had set for its IPO price (instead of a range) and closed at 1 282 yen. It offered 160 million shares, or approximately one third of the total holding in the parent company SoftBank Group. Despite an uneven first trading day, SoftBank Corp. increased 2,65 trillion yen (approximately $ 23.5 billion), making it Japan's largest ever IPO, placing it just behind Alibaba's record-based $ 25 billion debut on the New York Stock Exchange in 201 4. SoftBank Group is one of Alibaba's largest shareholders.) According to Bloomberg, 90 percent of investors who bought SoftBank Corps shares for the 1500 opening prize were individuals individuals the company had targeted an unusual marketing campaign. Factors that may have dampened investors' enthusiasm that network interruptions have previously been caused by the suspension of Ericsson equipment due to software extensions (O2 UK customers were also affected). The interruption stressed other concerns about SoftBank Corp's telecommunications infrastructure. According to a Nikkei report released last week, the company has decided to stop using Huawei Technologies hardware for security reasons and replace them in the coming years with equipment…

SoftBank Corps initial public offer started today with a blow before breaking into a bang and the stock fell 14.5 percent during its first trading day on the Tokyo Stock Exchange.

The company is the mobile unit of conglomerate SoftBank Group, whose holding also includes Sprint and $ 100 billion Vision Fund.

Shares in SoftBank Corp opened at 1 463 yen, below the 1 500 yen the company had set for its IPO price (instead of a range) and closed at 1 282 yen. It offered 160 million shares, or approximately one third of the total holding in the parent company SoftBank Group. Despite an uneven first trading day, SoftBank Corp. increased 2,65 trillion yen (approximately $ 23.5 billion), making it Japan’s largest ever IPO, placing it just behind Alibaba’s record-based $ 25 billion debut on the New York Stock Exchange in 201

4. SoftBank Group is one of Alibaba’s largest shareholders.)

According to Bloomberg, 90 percent of investors who bought SoftBank Corps shares for the 1500 opening prize were individuals individuals the company had targeted an unusual marketing campaign.

Factors that may have dampened investors’ enthusiasm that network interruptions have previously been caused by the suspension of Ericsson equipment due to software extensions (O2 UK customers were also affected).

The interruption stressed other concerns about SoftBank Corp’s telecommunications infrastructure. According to a Nikkei report released last week, the company has decided to stop using Huawei Technologies hardware for security reasons and replace them in the coming years with equipment from Ericsson and Nokia.

While the company says the hardware subsidy is not expected to cost a lot of money, it will also need to handle more competition next year. SoftBank Corps rivals are currently NTT DoCoMo and KDDI, but Rakuten will start mobile service in October 2019, making it Japan’s fourth mobile network operator.

In addition, the SoftBank Group is carrying massive debt amounting to 18 trillion dollars at the end of September, more than six times the amount it earns on an operating basis. This means that the Vision Fund is particularly dependent on Saudi Arabia’s State Fund, which contributed $ 48 billion, making it the fund’s largest investor.

Saudi Arabia’s state fund called the Public Investment Fund is run by Saudi crown prince Mohammed bin Salman, who has been involved by Turkish officials and the United States Central Intelligence Agency in the planning of journalist Jamal Khashoggi’s murder. Crown Prince bin Salman has denied involvement in the killing but the situation still raises the question of the future of Saudi Arabia’s participation with SoftBank, especially since Crown Prince bin Salman said in October that Saudi Arabia plans to invest another $ 45 billion in the second Vision Fund.

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