Shares in SoftBank mobile unit rebound after earlier plunge
TOKYO: Shares in the mobile unit of Japanese technology giant SoftBank rebounded after steep early declines yesterday on a rollercoaster second trading day, after a bruising debut saw stocks close 14.5 per cent lower.
In early exchanges, shares in SoftBank Corp were down 7.6 per cent at 1,183 yen as heavy selling dominated at the opening bell. The IPO price was 1,500 yen.
The shares were 8.3 per cent down at their lowest level – 22 per cent below the IPO price.
But buyers were found at that level and shares erased all of their early losses, even briefly dipping into the black.
At the break, the shares stood at 1,280 yen, just 0.15 per cent lower than the previous close.
The volatile trading came after the firm raised some US$23.5 billion in an initial public offering that was Japan’s biggest and the secondlargest globally after Chinese ecommerce giant Alibaba’s debut in 2014.
The money raised will swell the coffers of CEO Masayoshi Son’s Vision Fund, which has invested in some of the hottest tech firms, including Uber and WeWork.
Analysts said the stock had underperformed for several reasons: a weaker market in general, concerns over increased official intervention in the Japanese mobile sector, and a humiliating technical glitch in the run-up to the IPO.
But some individual investors who sought dividend payments would buy back the stock if it declines enough, analysts have said.
The benchmark Japanese market, the Nikkei 225, also opened down nearly one per cent and ended the morning session down 1.70 per cent as traders fretted over the pace of US Federal Reserve rate hikes next year.
Speaking to reporters after Wednesday’s stock plunge, Ken Miyauchi,CEOof theSoftBankCorp mobile division, acknowledged it was “unfortunate that the share price ended down”.
“But this is only the beginning. Many things will happen. We are off to a tough start of our journey... but I see this as a new start for our business,” Miyauchi told reporters. — AFP