SoftBank Group Corp (TYO:9984) on the Move

SoftBank Group Corp (TYO:9984) on the Move

SoftBank Group Corp (TYO:9984) on the Move

Shares in Japan’s SoftBank Group soared nearly six percent early Monday on reports it could list its mobile unit, potentially raising some $18 billion in one of the country’s biggest public offering.

In a statement, SoftBank group insisted no decision had been made, but acknowledged the listing was an “option.”

“We are always studying various capital strategy options,” the company said.

“The listing of SoftBank Corp. shares is one such option, but no decision has been made to officially proceed with this course.”

The Nikkei economic daily said the listing could bring in two trillion yen ($18 billion), one of the largest initial public offerings ever for a Japanese company.

It said the company hopes to apply to the Tokyo Stock Exchange in spring and begin trading on the bourse around autumn, offering around 30 percent of the shares in its subsidiary up to investors.

It is hoping for an overseas debut at the same time, possibly in London, the Nikkei added.

SoftBank Group has been aggressively investing in technology ventures under its flamboyant leader, Masayoshi Son.

The listing could rival the record 2.2 trillion yen that formerly state-run Nippon Telegraph and Telephone raised in 1987.

SoftBank Group Corp., formerly SoftBank Corp., incorporated on September 3, 1981, is a holding company. The Company is engaged in various businesses in the information industry. The Company’s segments are the Domestic Telecommunications segment, the Sprint segment, the Yahoo Japan segment and the Distribution segment.

The Domestic Telecommunications segment is engaged in the provision of mobile communications services in Japan; sale of mobile devices in Japan; provision of broadband services to retail customers in Japan, and provision of telecom services to corporate customers in Japan, such as data communications and fixed-line telephone services. The Domestic Telecommunications segment comprises the subsidiaries that operate domestic telecommunications businesses, such as SoftBank Corp. and Wireless City Planning Inc. SoftBank Corp. provides mobile communications services under the SoftBank and Y!mobile brands; broadband services for retail customers, and fixed-line telecommunications services for corporate customers, such as data communications and fixed-line telephone services. Wireless City Planning Inc. provides broadband wireless access (BWA) services using approximately 2.5 gigahertz (GHz) band.

The Sprint segment is engaged in the provision of mobile communications services in the United States; the sale and lease of mobile devices, and sale of accessories in the United States, and the provision of fixed-line telecommunications services in the United States. The Yahoo Japan segment is engaged in Internet advertising; e-commerce business, and membership services. The Distribution segment is engaged in the distribution of mobile devices overseas, and sale of personal computer (PC) software, peripherals and mobile device accessories in Japan. The Distribution segment comprises subsidiaries, such as Brightstar Global Group Inc. (Brightstar) and SoftBank Commerce & Service Corp. Brightstar’s operations include a wholesaling business purchasing mobile devices from manufacturers and distributing them to telecommunications operators and retailers in countries around the world. SoftBank Commerce & Service Corp.’s operations include the sale of mobile device accessories and information technology (IT)-related software and hardware in Japan.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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