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Thursday, April 22, 2021

SoftBank is preparing to win 16 billion dollars from the Korean “Kupang” offering

SoftBank Group, the largest shareholder in Kupang, is preparing to reap huge profits from the IPO of the South Korean e-commerce company this week, giving Masayoshi Son more evidence that his bets on the often criticized startups are paying off. .

SoftBank owns about 35% of the startup and may announce gains of up to $ 16 billion, after Kubang raised its IPO target price range to the public.

These will be the largest profits ever recorded from SoftBank’s investment in a startup in one quarter, since it began announcing its results in 2017.

Sun was criticized for his mistakes in supporting nascent companies, including “WeWork” and, more recently, “Greensel Capital”, but the South Korean startup added to a series of successes that compensated for those losses, and pushed his fund “Vision” to achieve record profits in The last two quarters.

If Kubang succeeds in its initial public offering, SoftBank’s profit could exceed the $ 11 billion it made from the Doordash offering in December.

Great win for “Massa”
Justin Tang, director of Asian research at United First Partners in Singapore, said: “In many ways, this is a great win for Masa, because he has true to his method of throwing all his weight to score big points, yet supporting Greensel is a resounding mistake. “.

Kubang and its bankers raised the offering price range on Tuesday in a sign of strong demand for shares. The startup, located in Seoul, is currently seeking to raise $ 4.08 billion, offering 120 million shares at a price ranging from $ 32 to $ 34 per share, and at the upper end of this range , The company’s valuation could be as high as $ 58 billion.

Masayoshi Son

The US Market Awaits “Kubang”
The IPO will be one of the largest by an Asian company on the American stock exchange, and the largest since the $ 25 billion bid by Alibaba Group in 2014, as well as Sun’s biggest success so far.

Anthia Lai, an analyst at Bloomberg Intelligence, said, “For SoftBank, it is unlikely that Kubang will be just an investment to make quick cash and exit, and given its position in the South Korean market and its position in SoftBank’s overall portfolio,” An investment that will last for some time. “

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