SOFTBANK’S IPO IS DIS­RUPTED

The Star Early Edition - - BR | STOCKS -

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

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