Softbank announced that the planned stock market listing of its Japanese telecom business has been approved by the Tokyo Stock Exchange. The company is selling a 37 percent stake in the business to the public in order to focus more on its core investment portfolio and give the telecom business in its own platform for financing and investment.
The domestic and international underwritten offering will include 1.6 billion shares in Softbank Corp sold at a preliminary price of JPY 1,500 each. This gives the company a market capitalisation of around JPY 7.2 trillion and proceeds for Softbank of JPY 2.4 trillion (USD 21 billion). The underwriters can increase the number of shares sold by 10 percent if demand is strong.
After the listing Softbank Group will still have majority control of the business, with a 63.14 percent stake assuming the greenshoe option is exercised. The company said it plans to continue to cooperate with the telecoms business, which can take advantage of services from other companies in the Softbank portfolio.
The shares are expected to start trading on 19 December.
