Soft­Bank sells all shares for US$23bil tele­com IPO

The Star Malaysia - StarBiz - - Front Page -

TOKYO: Soft­Bank Group Corp’s 2.65 tril­lion yen (US$23.5bil) ini­tial pub­lic of­fer­ing (IPO) for its tele­com unit was fully-sub­scribed, in­clud­ing an ex­tra al­lot­ment of shares, sources said.

The un­der­writ­ers were able to cover their en­tire book by Wed­nes­day, thanks to strong de­mand from re­tail in­vestors in Ja­pan and over­seas buy­ers, said the sources.

Bro­kers are col­lect­ing more or­ders from in­di­vid­ual in­vestors, which will prob­a­bly push the stock above the pre­lim­i­nary price of 1,500 yen apiece when trading be­gins on Dec 19.

In­clud­ing an over­al­lot­ment of about 160 mil­lion shares, Soft­Bank is sell­ing a total of roughly 1.76 bil­lion shares in the tele­coms busi­ness.

Rep­re­sen­ta­tives of Soft­Bank and the lead un­der­writ­ers de­clined to com­ment on the book-build­ing process.

The shares of Soft­Bank fell 4.9% in Tokyo yes­ter­day, af­ter re­vers­ing a steeper de­cline fol­low­ing the news that the IPO was fully sub­scribed.

A mo­bile ser­vice out­age in the af­ter­noon didn’t ap­pear have a sig­nif­i­cant im­pact.

Soft­Bank is set to an­nounce the fi­nal of­fer­ing price on Mon­day. The fig­ure is un­likely to change, even amid a global stock sell-off that’s dragged the Nikkei 225 Stock Av­er­age down for three straight ses­sions this week.

That’s be­cause ad­di­tional de­mand for the stock may also come from in­sti­tu­tional in­vestors, who will be pur­chas­ing shares to in­clude in their port­fo­lios.

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