Softbank’s blockbuster IPO has flopped in its market debut.
Shares in the Japanese company’s mobile telecommunications unit plunged as much as 10% in Tokyo on Wednesday, their first day of trading.
The business is one of Japan’s biggest wireless carriers and has provided the foundation for SoftBank CEO Masa Son’s vast tech empire. By listing a big chunk of it, SoftBank Group (SFTBY) has raised about $23.5 billion.
That makes it Japan’s biggest ever stock float — and the world’s largest since Alibaba’s (BABA) $25 billion listing in New York in 2014.
Strong demand from investors for a piece of the mobile business had prompted Softbank to increase the number of shares it was selling.
But it went public at a tough time for stocks: Japan’s benchmark Nikkei index has fallen more than 6% since the start of December and is down about 13% from its recent high in early October.
SoftBank’s mobile business has also faced some negative headlines this month. It suffered an embarrassing service outage on December 6 and said last week it’s reviewing whether to remove equipment made by Chinese manufacturer Huawei from its network, a potentially costly move.
Listing the mobile business is a key part of Son’s efforts to reposition SoftBank as a global tech investor. The move splits the company in two, allowing investors to choose between its mobile unit and its tech investment business, which includes a big stake in Alibaba.
Son has become a major player in the global tech industry after launching the almost $100 billion Vision Fund last year.