SoftBank IPO Faces Headwinds

SoftBank Group Corp.’s expected spin-off of its Japanese telecoms business will lure investors seeking exposure to a solid tech name but the prospect of tougher competition in a mature industry may turn off those chasing higher returns, Reuters reported. SoftBank shares have risen about 3% this week since it said it was considering what would be the largest IPO by a Japanese company in nearly two decades, a deal that would accelerate the group’s transformation into one of the world’s biggest tech investors. The company aims to sell about 30% of SoftBank Corp., Japan’s number three wireless carrier, for about two trillion yen (£12.93 billion), the Nikkei newspaper reported. The proceeds would be invested in growth assets such as foreign information technology companies. While it could provide founder Masayoshi Son’s global investment juggernaut with a cash boost, the domestic phone business is facing a concerted attempt by regulators to drive down telco fees and promote new entrants, threatening to crimp profits.