SoftBank considers US$30bn IPO

SoftBank Group is reportedly seeking a valuation of US$90bn for its Japanese mobile unit in a planned IPO. The firm is considering selling a third of the business in the IPO, which indicates that the IPO could be as big as US$30bn, writes Bloomberg. If SoftBank Mobile could raise US$30bn from the IPO, it would be the largest listing ever in the world. The final valuation will depend on the investors’ feedback, according to the report.

Japan currently has three mobile operators: NTT Docomo, KDDI’s au and SoftBank, with respective market share and users of 45.3% (76.4 million), 31% (52.3 million) and 23.6% (39.8 million) as of end of March 2018, according to Japan Telecommunications Carriers Association’s data. A new mobile player is also expected to join in the competition and shake up the triopoly – Japanese ecommerce group Rakuten has secured spectrum and looks to launch services in 2019.

NTT Docomo has a market value of almost US$100bn, while KDDI was at about US$70bn.

SoftBank Mobile’s free cash flow has more than doubled to Y 154bn (US$1.4bn) in the three months ended June. Revenue from domestic telecom operations, which include wireless, broadband and fixed-line services, rose 4.6% to Y 880.5bn (US$7.91bn) in the quarter. SoftBank had 33.6 million mobile subscribers, an increase of 434,000 from the previous quarter.

Other News

Published on 17.10.2018
Published on 17.10.2018
Published on 17.10.2018
Published on 17.10.2018