BUSINESS OF TELECOMS

SOFTBANK’S IPO IS DISRUPTED

SOFTBANK Group’s mobile phone services were disrupted in some parts of Japan yesterday, ahead of an initial public offering (IPO) of its domestic telecoms unit later this month that will potentially raise $21 billion (R290.08bn). Shares of the group fell as much as 6 percent after the news, pressured also by a broader sell-off in stocks following the arrest of a senior executive at Huawei Technologies. The two companies have partnered on 5G trials. A SoftBank spokesperson said connection problems started around 4.39am. Other details, including when full service will be restored, are not yet known. Strong retail demand saw the SoftBank Group last week forgo a price range for the bumper IPO of its domestic telco, SoftBank Corporation, setting a single indicative rate of 1 500 yen (R183.27). SoftBank will set a final offering price on Monday, with shares set to begin trading on December 19. Shares of the group closed down 5 percent yesterday, in a broader market that skidded to a two-week low after Canada arrested Huawei’s global chief financial officer, Meng Wanzhou, at the request of the US, threatening a new spike in Sino-US tensions. I Reuters