SoftBank mobile services disrupted ahead of bumper IPO


December 6, 2018 12:13 pm

SoftBank Group Corp’s mobile phone services were disrupted in some parts of Japan on Thursday, ahead of an initial public offering (IPO).
Photo: AP

INTERNATIONAL – SoftBank Group’s mobile phone services were disrupted in some parts of Japan on Thursday, ahead of an initial public offering (IPO) of its domestic telecoms unit later this month that will potentially raise $21 billion.

Some customers at Japan’s third-largest telco have been unable to make calls or use the internet in the hours following the onset of connection problems.

The network issues, which stemmed from problems at exchanges for high-speed wireless LTE network, are on the way to resolution, a SoftBank spokeswoman told Reuters.

SoftBank has 40 million mobile users.

Shares of the group fell as much as 6 percent after news of the disruption, pressured by a broader market sell-off following the arrest of the global chief financial officer of Huawei Technologies. The two companies have partnered on 5G trials.

Shares of SoftBank Group’s telco unit, SoftBank, are set to debut on the Tokyo Stock Exchange on December 19. The group will set a final offering price on December 10.

Strong retail demand saw SoftBank last week forgo a price range for the bumper initial public offering, setting a single indicative rate of ¥1 500 (R186).

Shares of the group closed down 5 percent, as the broader market skidded to a two-week low after Canada arrested Huawei’s Meng Wanzhou at the request of the US, threatening a new spike in Sino-US tensions.


Reuters

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