SoftBank was able to raise $ 23.5 billion due to an IPO. This deal was the second largest in history. During the initial trade process the securities fell by 14.5%.
According to the Bloomberg agency, a larger number of the investors who bought the securities during the IPO are individuals. Investment funds and other organizations got only 10% of the shares.
SoftBank has managed to sell 1.5 billion shares at 1,500 yen each. 33% of the securities are in free circulation. The cost of the telecommunications unit was 7.18 trillion yen. More than 1 trillion was lost after the first session.
SoftBank brought to the market the most promising division. In general, the situation in the mobile market is not the best. The government is putting pressure on the operators, and the number of competitors is only growing.
To attract more investors, SoftBank has promised that 85% of the profits will be spent for paying dividends.
The company’s mobile business has expanded due to purchases of Japan Telecom in 2004 and a Vodafone unit in 2006. SoftBank Corp is now one of the three leading operators in the country.
After purchasing several large companies, SoftBank got a debt of 18 trillion yen. The company is not going to spend the money raised to pay for it. The funds will be used to purchase foreign assets in the IT field.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade