SoftBank telecoms unit suffers $9bn slump on debut after record IPO
SoftBank shares sank 15% on debut, wiping $9bn off their value, as investors sold off the telecoms operator after its record initial public offering (IPO) on worries about a recent service outage and its exposure to Chinese telecoms gear maker Huawei. The poor start for the unit of tech investment giant SoftBank Group Corp meant that for Japan’s mom-and-pop investors, concerns about the company and the nation’s telecoms market trumped the appeal of the group’s charismatic founder, Masayoshi Son. Such a debut is uncommon in the Japanese IPO market. Of 82 IPOs so far in 2018, SoftBank Corp’s $23.5bn float was only the seventh to open below the offering price. Among recent major IPOs, Japan Display was the only one to flop, suffering a fall in its 2014 debut. “There was a disruption in its network early this month as well as Huawei’s issues. There hasn’t been good news involving SoftBank recently,” said Tetsuro Ii, CEO at Commons Asset Management. Shares of SoftBank Corp closed at ¥1,2...
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