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UPDATE 2-Japan's SoftBank steps closer to transformation with $ 21 billion mobile IPO

IPO @ * To sell shares at tentative price of 1,500 yen each * Sale completes transformation of SoftBank into…


* To sell shares at tentative price of 1,500 yen each

* Sale completes transformation of SoftBank into tech investor

* Unit challenged mobile duopoly, brought iPhone to Japan (Adds analyst’s comment, telecoms context)

TOKYO, Nov. 12 (Reuters) – SoftBank Group Corp.’s domestic telecom unit received Monday’s approval for listing on the Tokyo Stock Exchange at 2.4 billion yuan ($ 21.04 billion ), a regulatory filing showed.

The unit, SoftBank Corp., will list on Dec. 19, the filing with the Ministry of Finance showed.

The IPO will mark the transformation of the parent from a mobile phone network provider – which successfully challenged Japan’s incumbent duopoly &#821

1; into one of the world’s largest technology investors under Chief Executive Masayoshi Son .

The offer will provide the group with even more funds that can be deployed into global tech investments. SoftBank’s bid has been as varied as small gaming startups, ride-hailing companies such as Uber Technologies Inc., and e-commerce behemoth Alibaba Group Holding Ltd.

On sale, 1.6 billion SoftBank Corp shares are at an initial price of 1,500 yen each, raising 2.4 trillion yen. The unit will have a market value of 7.18 trillion yen upon listing.

Additionally, up to 160 million shares worth 240.6 billion yen will be offered in an overall investment if demand is strong. I det tilfellet vil det totale vil komme tæt på de $ 25 milliarder av aksjer solgt av Alibaba i 2014 i den største-ever IPO.

The parent will retain a stake of around two-thirds, depending on the overallotment. [19659003] The final IPO price will be determined on Dec.

The IPO was initially expected to appeal to investors seeking stability, but the government has recently called on carriers to lower fees. while backing more wireless competition, sending shockwaves through the industry.

Yet SoftBank’s brand name is still likely to draw retail investors who grew up using SoftBank’s phone and internet services. Many still see CEO Son as a tech visionary who challenged entrenched rivals NTT DoCoMo Inc. and KDDI Corp and brought Apple Inc.’s iPhone to Japan.

“I think a reasonable amount of money will be attracted to this one,” said Tetsutaro Abe, an equity research analyst at Aizawa Securities. “It’s a mobile company, so the cash flow is steady.”

Nomura, Mizuho, ​​Deutsche Bank, Goldman Sachs, JP Morgan and SMBC Nikko is joint global coordinators for the IPO.

($ 1 = 114.0600 yen)

(Reporting by Taiga Uranaka; Additional reporting by Kentaro Sugiyama, Sam Nussey, Chris Gallagher and Ran Kim; Writing by Ritsuko Ando; Editing by Christopher Cushing)

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