SoftBank expects $4.6 billion profit from Alibaba’s IPO
Japanese SoftBank anticipates $4.6-billion gain from the Alibaba listing on the New York Stock Exchange, as the Chinese e-commerce giant soared by 38 percent on its debut.
Japanese SoftBank shared its expectations with CNBC of the gain from Alibaba Group Holding listing in New York. The amount to be received is in the range of 500 billion yen (equivalent to $4.6 billion). On the first day of its trading, Alibaba soared by 38 percent.
SoftBank CEO Masayoshi Son pointed out a possible intention towards owning a larger share of Alibaba. Currently, as Son underscored, the ownership of 32 percent, making Softbank the largest shareholder in Alibaba, was rewarding for the Japanese financial institution. Furthermore, Son said he was very optimistic about Alibaba’s future.
On Saturday, SoftBank said it was going to book the Alibaba profit in the period half-year until the end of September. It said the precise figure would be released some time later. The gain reflects Alibaba’s mounted asset value, with new shares issued and preference shares converted into common stock in relation with the listing.
Alibaba debuted on the New York Stock Exchange on Friday and its shares skyrocketed, as investors rushed at the IPO estimated as the largest so far in history. China is a country demonstrating solid growth, and Alibaba handles around 80 percent of the country’s online sales.
