SoftBank Shares Plunge 14% Amid Uber's Disappointing Market Debut
SoftBank Group experiences a significant drop in its own stock value after Uber prices its initial public offering at the low end of its expected range. The Japanese conglomerate loses out on a planned $3 billion paper profit as its massive stake in the ridesharing giant falters.
SoftBank Group watches its stock value drop significantly as Uber's highly anticipated initial public offering falls flat. As Uber's largest shareholder with a 16.3% stake held through its Vision Fund, the Japanese conglomerate experiences a 14.4% decline in its own shares since Uber begins trading on the open market.
The struggling debut dashes SoftBank's expectations for a massive $3 billion paper profit from its early 2018 investment. Uber prices its IPO at the low end of its planned range, triggering an immediate sell-off that drags SoftBank shares down from 11,700 yen to 10,020 yen in just a few days.
Uber CEO Dara Khosrowshahi acknowledges the rough transition in a memo to employees, noting the obvious disappointment in the stock's post-IPO performance. The ongoing losses for both companies coincide with broader market downturns driven by escalating trade tensions between the United States and China.