SoftBank Corp shares recover from early fall, after record IPO

SoftBank Corp. President and CEO Ken Miyauchi poses for a photo as he is in possession of an IPO certificate with the Tokyo Stock Exchange director and executive officer Yasuyuki Konuma, during a ceremony to mark the company’s debut on the Tokyo Stock Exchange in Tokyo, Japan, December 19, 2018. REUTERS/Issei Kato

TOKYO (Reuters) – SoftBank Corp’s shares fell as much as 8 percent early on Thursday, erasing losses in volatile trade, after the telco’s 15-percent tumble on the debut of the previous day.

The unit of technical investment giant SoftBank Group Corp had raised 2.65 trillion yen ($23: 55 hrs billion), 1500 yen per share in Japan’s largest-ever IPO. The slide has inflicted great losses on the private investors that had typically purchased in the name of the household.

SoftBank Corp shares fell to a low of 1,176 yen before recovering to 1,309 yen. Parent SoftBank Group Corp’s shares fell 1.7 percent.

(IMAGE: SoftBank Corp rocky start –

The bumpy start before the shares have taken the gloss of the listing of the telco, which has been hammered by bad news, an extensive network outages and the government calls to cut carrier fees.

SoftBank Group founder and CEO Masayoshi Son was hoping to place a value on the unit would help the group to conglomerate discount, where its shares traded at a lower valuation than the value of the group of components, including a stake in Alibaba, chip designer Arm Holdings, and the nearly$100 billion Vision Fund.

“The IPO seems to have no discernible effect on the narrowing SoftBank is holdco discount,” said Arun George, an analyst who writes on independent research platform Smartkarma and calculates SoftBank Group, the shares are trading at a 34 percent discount.

The benchmark index declined by approximately 1 percent.

Reporting by Sam Nussey; Editing by Muralikumar Anantharaman

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