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Softbank Mobile Division or pushes the world’s largest IPO

Beijing time on August 7 morning news, according to Bloomberg News cited informed sources, Softbank Group is considering a valuation of about $90 billion to promote its mobile operator business IPO.
Informed sources said that Softbank is communicating with consultants and plans to sell one-third of the shares in the IPO, worth about $30 billion. The current negotiations are still in their infancy, and the final valuation depends on investor feedback. Bloomberg said it would make Softbank Mobile the largest IPO ever.
According to people familiar with the matter, Softbank Mobile will be listed as early as the fourth quarter. Other companies listed this year originally had great expectations for valuation, but in the end they found that investors may not buy it. For example, China‘s smartphone maker Xiaomi‘s current market value is about 50 billion US dollars, about half of what it expects when it launched the listing process in 2017.
Informed sources also said that Softbank hopes that its mobile operator’s business P/E ratio can be higher than competitors NTT Docomo and KDDI. Shareholders believe that this well-funded company can ensure dividends, and technical cooperation and other benefits with the parent company can also bring higher valuations. NTT Docomo had a market capitalization of about $100 billion as of Monday and KDDI of about $70 billion.
A Softbank spokesman declined to comment.
Sun Zhengyi, founder and chairman of Softbank, said at an investor meeting on Monday that he was working hard to promote a listing on the Tokyo Stock Exchange. In the three months to June, the department’s free cash flow doubled to 154 billion yen ($1.4 billion).
The Internet has been the core of Sun’s vision for the future for many years. After the birth of the mobile Internet, he also got the exclusive sales rights of the iPhone in Japan.
However, Sun Zhengyi recently began to transform Softbank into a huge investment company, injecting funds into the network and shared office areas, while still selling mobile assets. In April of this year, Softbank agreed to sell the controlling stake of US carrier Sprint to T-Mobile USA.
The largest IPO record was previously maintained by Alibaba Group, which had an IPO issue of $25 billion in 2014.

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