The shares of SoftBank Group Corp.’s Japanese telecom business fell at the start of trading after Masayoshi Son raised more than $20 billion in an initial public offering.
There are a number of reasons Japanese aren’t starting companies. Jobs are plentiful and the unemployment rate is the lowest among all developed economies save for the Czech Republic.
The ride-hailing giant has reportedly held talks with both companies but hasn’t yet decided on a course of action.
The e-commerce operator is valued at about $7 billion after the round.
The Japanese technology conglomerate plans to sell 1.6 billion shares at 1,500 yen apiece, valuing the business at 7.18 trillion yen ($62.9 billion).
SoftBank reported second-quarter profit that far exceeded the highest analyst estimate largely because of multi-billion dollar gains on a handful of his many deals.
Cashless payments accounted for just 20% of total consumer spending in Japan during 2016, compared with 60% in China and 89% in S Korea.
With the growing backlash against Saudi Arabia over the murder of government critic Jamal Khashoggi, SoftBank Group Corp. faces tough decisions in its relationship with the kingdom.
While a growing list of business leaders have withdrawn from the event, the Japanese conglomerate is one of the kingdom’s closest partners and founder Masayoshi Son is on the conference’s advisory board.
The Japanese conglomerate and its Vision Fund invested $4.4 billion in WeWork last year and put in an additional $1 billion in August in the form of a convertible note.