SoftBank CEO Masayoshi Son said the group is working towards a listing on the Tokyo Stock Exchange
Japanese telecommunications group SoftBank is considering seeking a valuation of about $90 billion for its domestic wireless business in a planned initial public offering (IPO), international press reported, citing people familiar with the matter.
According to the reports, SoftBank is speaking to advisers about selling a third of the business, or $30 billion in the IPO. The SoftBank unit could be listed as early as the fourth quarter.
SoftBank founder and chairman Masayoshi Son said in an investor presentation on August 6 that the telco is working toward a listing on the Tokyo Stock Exchange.
SoftBank’s revenue from domestic telecom operations, which include wireless, broadband and fixed-line services, grew 4.6% year-on-year to 880.5 billion yen ($7.92 billion) in the company fiscal first quarter ended June 30. SoftBank ended the quarter with 33.6 million mobile subscribers, an increase of 434,000 from the previous quarter.
The group’s operating profit reached 714.9 billion yen in the quarter, mainly due to contributions from its $100 billion Vision Fund which invests in technology startups, SoftBank said.
SoftBank’s revenue in fiscal Q1 amounted to 2.27 trillion yen, up 4% compared to the year-ago period. Operating profit at the SoftBank Vision Fund and other funds reached 239.9 billion yen, up 128% versus fiscal Q1 2017.
SoftBank Group had created its Vision Fund in October 2016, with the main focus of making global investments in the technology sector. Some of the firms in which the Japanese carrier has made investments include shared office company WeWork, Indian hotel booking site OYO Rooms and China’s truck-hailing service Full Truck Alliance Group.
“Companies in which we invest all try to change industries via artificial intelligence (AI),” Son said. “We don’t feel that we are a simple investment company. Actually, we have been focusing on information revolution from the very first day of our foundation of the business. And as a method for that, that we own 20% to 30% of the stake in best companies with best entrepreneurs (…) so that we will be able to realize AI revolution. So that would be our strategy for the group,” he added.
“AI will redefine all industries and AI should be the biggest revolution in human history. And winners in AI will be winners in the future,” Son said.
