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Softbank shares down as mobile unit makes Tokyo debut | |
(35 minutes later) | |
The mobile unit of Japanese tech giant Softbank has had a disappointing debut on the Tokyo stock market. | |
The firm aims to raise up to 2.6 trillion yen ($23bn; £18bn) by selling shares at 1,500 yen each in one of the world's largest ever stock offerings. | The firm aims to raise up to 2.6 trillion yen ($23bn; £18bn) by selling shares at 1,500 yen each in one of the world's largest ever stock offerings. |
But as markets opened in Tokyo on Wednesday, shares were trading down at 1,463 yen. | But as markets opened in Tokyo on Wednesday, shares were trading down at 1,463 yen. |
Originally a telecoms firm Softbank has become a vast conglomerate, covering robotics, chips and investments. | |
The firm was founded by Japan's richest man Masayoshi Son. | The firm was founded by Japan's richest man Masayoshi Son. |
What does this sale mean for Softbank? | |
While you could already buy shares in Softbank itself, its telecommunications unit is now available for public purchase. | |
This initial public offering (IPO) - a way for company to raise new capital - is seen as cementing Softbanks' move from domestic telecommunication provider to a global tech investor. | |
It was expected to be one of the biggest-ever offerings of shares on the stock market that Japan - or the world - has ever seen. | |
The 2.6 trillion yen that Softbank hopes to raise would get the firm close to Chinese ecommerce giant Alibaba's record $25bn IPO in 2014. | |
In comparison, Facebook only raised $16bn when it went public in 2012. | In comparison, Facebook only raised $16bn when it went public in 2012. |
The money raised by the public offering will likely fuel the company's next wave of tech investments. | The money raised by the public offering will likely fuel the company's next wave of tech investments. |
What is Softbank? | |
As a huge conglomerate, the company can be hard to define. Softbank started as a telecoms company but has spread out through many deals and investments. | |
The firm has moved into robotics, bought UK chip firm ARM Holdings and invested in satellite start-up OneWeb and ride-sharing firms, as well as in self-driving technology with Toyota. | The firm has moved into robotics, bought UK chip firm ARM Holdings and invested in satellite start-up OneWeb and ride-sharing firms, as well as in self-driving technology with Toyota. |
It also acquired Vodafone's Japanese operations and the US telecoms company Sprint. | It also acquired Vodafone's Japanese operations and the US telecoms company Sprint. |
The firm set up a venture fund with Saudi Arabia, which focuses on emerging technology and has around $90bn at its disposal. | The firm set up a venture fund with Saudi Arabia, which focuses on emerging technology and has around $90bn at its disposal. |
Saudia Arabia is the fund's major investor and other backers include Apple and Foxconn. | Saudia Arabia is the fund's major investor and other backers include Apple and Foxconn. |
But Softbank has come under criticism for co-operation in light of the recent death of Saudi dissident journalist Jamal Khashoggi. | |
Company chief Masayoshi Son condemned the Khashoggi murder, but said Softbank must continue to work with Riyadh. | |
Who is Masayoshi Son? | Who is Masayoshi Son? |
Mr Son founded Softbank and has guided it to become one of the world's biggest technology companies. | |
The entrepreneur - Japan's richest man according to Forbes Magazine - is known for having an eye for firms with big potential and for spotting transformative industries and trends. | The entrepreneur - Japan's richest man according to Forbes Magazine - is known for having an eye for firms with big potential and for spotting transformative industries and trends. |
He saw the potential in e-commerce before many others and was an early investor in Alibaba. | He saw the potential in e-commerce before many others and was an early investor in Alibaba. |
Often described as the Steve Jobs or Bill Gates of the Japanese business world, he's seen as someone quite different from country's more conservative corporate culture. | Often described as the Steve Jobs or Bill Gates of the Japanese business world, he's seen as someone quite different from country's more conservative corporate culture. |