Softbank venture capital arm fails to inspire
By Bayan Rahman in Tokyo - Dec 15 2000 08:34:00
Softbank Investment, the venture capital arm of Japanese internet group Softbank, fell by almost 15 per cent on its Nasdaq Japan debut on Friday, reflecting a lack of interest among investors for internet-related issues.
The initial public offering came on a day when Japanese stocks took a battering, tracking the decline in US stocks.
Softbank Investment shares closed at ¥1.28m ($128,000), down 14.6 per cent from the IPO price of ¥1.5m.
Although the ¥1.5m IPO price was near the lower end of expectations, the stock’s decline on its debut highlights how weary Japanese investors are towards internet-related companies.
The euphoria surrounding Japan’s internet boom has all but evaporated and investors are looking more keenly at earnings prospects and realistic shares valuations, analysts said.
The internet incubator’s faltering debut came one day after Softbrain, a software developer that listed on the Mothers market for start-ups on Thursday, failed to find buyers on its debut even at 20 per cent below its IPO price of ¥700,000. On Friday, Softbrain finished at ¥393,000, down 43 per cent from its IPO price.
Softbank Investment, which issued 7,800 new shares with a secondary offering of 5,200 shares, is the latest Softbank unit to list on Nasdaq Japan. Others include Morningstar Japan and E*trade Japan.
Daiwa Securities SB Capital Markets lead managed the offer.
© Copyright The Financial Times Limited 2000.
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