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Softbank shares down as mobile unit makes Tokyo debut | Softbank shares down as mobile unit makes Tokyo debut |
(35 minutes later) | |
The mobile phone unit of Japanese tech giant Softbank has had a disappointing debut on the Tokyo stock market, with shares falling 14.5%. | |
The firm raised as much as 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 raised as much as 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 by the close of trade in Tokyo, shares were down 14.5% from the price set for its initial public offering. | But by the close of trade in Tokyo, shares were down 14.5% from the price set for its initial public offering. |
Analysts said the disappointing debut was not entirely unexpected. | Analysts said the disappointing debut was not entirely unexpected. |
"Softbank wasn't as popular an [initial public offering] as the market had expected," Singapore-based market expert David Kuo told the BBC. | "Softbank wasn't as popular an [initial public offering] as the market had expected," Singapore-based market expert David Kuo told the BBC. |
"It was oversubscribed, but not as much as hoped." | "It was oversubscribed, but not as much as hoped." |
Originally a telecoms firm, Softbank has become a vast conglomerate covering robotics, chips and investments. | 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? | What does this sale mean for Softbank? |
While you could already buy shares in Softbank itself, its telecommunications unit, called Softbank Corp, is now also available for public purchase. | While you could already buy shares in Softbank itself, its telecommunications unit, called Softbank Corp, is now also available for public purchase. |
The firm's initial public offering (IPO) - a way for a company to raise new capital - was seen as cementing Softbank's move from a domestic telecommunication provider to a global tech investor. | The firm's initial public offering (IPO) - a way for a company to raise new capital - was seen as cementing Softbank's move from a domestic telecommunication provider to a global tech investor. |
It was expected to be one of the biggest offerings of shares on any stock market to date. | It was expected to be one of the biggest offerings of shares on any stock market to date. |
Chinese e-commerce giant Alibaba listed for a record $25bn in 2014. In comparison, Facebook raised $16bn when it went public in 2012. | Chinese e-commerce giant Alibaba listed for a record $25bn in 2014. In comparison, Facebook raised $16bn when it went public in 2012. |
Mr Kuo, who is chief executive of the Motley Fool in Singapore, said however that the stock price should pick up once investors understood better how to value Softbank's telecoms arm. | Mr Kuo, who is chief executive of the Motley Fool in Singapore, said however that the stock price should pick up once investors understood better how to value Softbank's telecoms arm. |
"As an entrepreneur, Masayoshi Son had the freedom to invest as he wished," Mr Kuo said. | "As an entrepreneur, Masayoshi Son had the freedom to invest as he wished," Mr Kuo said. |
"But the [newly listed arm] now has to play by the harsh rules of the market. It will be valued on revenues, profit and cash flow." | "But the [newly listed arm] now has to play by the harsh rules of the market. It will be valued on revenues, profit and cash flow." |
What is Softbank? | What is Softbank? |
Softbank started as a telecoms company, but has spread out through many deals and investments. | 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 US telecoms company Sprint. | It also acquired Vodafone's Japanese operations and US telecoms company Sprint. |
The firm set up a venture fund with Saudi Arabia, which focuses on emerging technology and has about $90bn at its disposal. | The firm set up a venture fund with Saudi Arabia, which focuses on emerging technology and has about $90bn at its disposal. |
Saudia Arabia is the fund's major investor. Other backers include Apple and Foxconn. | Saudia Arabia is the fund's major investor. Other backers include Apple and Foxconn. |
But Softbank has come under criticism for co-operation in the light of the recent killing of Saudi dissident journalist Jamal Khashoggi. | But Softbank has come under criticism for co-operation in the light of the recent killing of Saudi dissident journalist Jamal Khashoggi. |
Company chief Masayoshi Son condemned Khashoggi's murder, but said Softbank must continue to work with Riyadh. | Company chief Masayoshi Son condemned Khashoggi's 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. | 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 the 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 the country's more conservative corporate culture. |