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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: 45bday who wrote (215)	6/2/1999 8:57:00 PM
From: Edwin S. Fujinaka	Read Replies (1) \| Respond to of 6020

The question of whether and when Softbank will seek to be listed for trading here in the US is interesting. It appears that many of the Company's actions are designed to overcome impediments to a listing. Actually, the American Depository Receipt (ADR) may be the most likely form of trading here in the US. Many Japanese Companies have gone that route and some of the ADRs actually trade on the New York Stock Exchange but some may have to settle for a Nadaq listing. The financial requirements are different for listing on the various exchanges and I think that a NYSE listing is more prestigious, but harder to obtain. I don't have any details on the requirements for listing. In any case, a major financial institution can issue ADRs which are related to and backed by stock held on deposit at the Financial Institution. The ratio of ADRs to number of shares of the stock as issued and traded on the Home Country Stock Exchange can be set to arrive at any price that seems appropriate for the ADR. For example, Softbank trades on the Tokyo Stock Exchange at a dollar converted from Yen price of $116/share. An American Financial Institution like Morgan Guarentee Trust (for example) could buy one share of Softbank in Tokyo and issue four American Softbank ADRs which would be worth $29 each. Then all of the American trading could transpire with the ADRs. Normally, the ADRs and the Japanese shares will track pretty closely, and I suppose that International Arbitragers will see to that. I don't think that this has to necessarily be the case however and I think that minor deviations from direct tracking can occurr. I believe that a small consistant pattern of higher prices for the ADR than for the Parent Stock would lead to the issuance of more ADRs which would necessitate the buying of more Softbank on the Tokyo Exchange or from the Softbank Treasury. There is a certain fuzziness about this whole question of Softbank ADRs that is quite interesting. I've seen some predictions that something could happen this year.