Softbank is planning to sell its shares for ¥1500 (£10.34) per piece in its initial public offering (IPO) that is scheduled next month. It is considered as the biggest ever listing in the country.
Reuters reported that the company did not disclose a price range, instead, it plumped for a single preliminary figure for the 2.41 trillion yen (£16.44 billion) IPO. It revealed that the firm is confident that the demand will be high.
Usually, a range is given for an IPO to cater for the increased or decreased demand among its potential investors, however, according to Reuters, Masayoshi Son, the founder of Softbank, has dictated a price in which he is confident that the investors will be willing buy at.
The IPO would value Softbank at almost 7.2 trillion yen (£50 billion). The IPO is set for the 19th of December on the Tokyo Stock Exchange. Its final price will be determined on the 10th of December. Currently, the record for the largest IPO is held by Alibaba Group, which raised a total of $25 billion way back in 2014. Once there is enough demand for the shares of SoftBank Group, an overallotment can possibly raise its offering’s total by 240.6 billion yen (or approximately $2.12 billion), bringing it closer to the amount that Alibaba was able to raise.
The company boasts 34 million mobile subscribers. Its shares will be issued on the 19th of December, and more than 87 percent of them have already been allotted to Japanese investors.
According to Reuters, a senior official at a major brokerage, stated: “From what we are getting from our customers, we have demand greater than the number of shares we are allocated to sell.”
Softbank is selling approximately 1.6 billion shares in the firm. Reuters said that the IPO is aiming to give the company the money to pay down its debt and invest in innovations that Masayoshi Son predicts will drive the future tech trends.