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MarketScreener Homepage  >  Equities  >  Tokyo Stock Exchange  >  Z Holdings Corporation    4689   JP3933800009

Z HOLDINGS CORPORATION

(4689)
  Report
End-of-day quote. End-of-day quote Tokyo Stock Exchange - 01/15
717.4 JPY   +1.49%
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Japan's SoftBank steps closer to transformation with mammoth mobile IPO

11/12/2018 | 05:22am EST
A journalist raises her hand to ask a question to Japan's SoftBank Group Corp Chief Executive Masayoshi Son during a news conference in Tokyo

TOKYO (Reuters) - SoftBank Group Corp has won approval to conduct a 2.4 trillion yen ($21.04 billion) initial public offering (IPO) of its domestic telecoms business, in a deal that will seal the group's transformation into a top global technology investor.

The IPO will be one of the biggest ever worldwide, and will provide the group with funds to pay down debt and continue placing big bets on innovations that Chief Executive Masayoshi Son predicts will drive future tech trends.

SoftBank's bets so far have been as varied as small gaming startups, ride-hailing firms such as Uber Technologies Inc [UBER.UL], and e-commerce behemoth Alibaba Group Holding Ltd.

SoftBank Group aims to raise 2.4 trillion yen through the sale of 1.6 billion SoftBank Corp shares at an tentative price of 1,500 yen each, showed a filing with the Ministry of Finance on Monday.

The amount could rise by 240.6 billion yen if demand triggers an overallotment, taking the total closer to the $25 billion that Alibaba raised in 2014 in the biggest-ever IPO.

The final IPO price will be determined on Dec. 10, and SoftBank Corp will list on the Tokyo Stock Exchange on Dec. 19 with an initial market value of 7.18 trillion yen - about 1 trillion yen above that of rival KDDI Corp, which has about 10 million more subscribers.

The parent will retain a stake of around two-thirds, depending on the overallotment.

GROWTH IN QUESTION

The mammoth offering comes at a time when investors have begun questioning the outlook for Japan's telecoms companies.

The IPO was initially expected to appeal to investors seeking stability, but the government has recently called on carriers to lower fees while backing more wireless competition, sending shockwaves through the industry.

Yet SoftBank's brand name is still likely to draw retail investors long accustomed to using SoftBank's phone and internet services. Many still see CEO Son as a tech visionary who challenged entrenched rivals NTT DoCoMo Inc and KDDI, and brought Apple Inc iPhone to Japan.

Japanese households are commonly seen as an attractive target in IPOs with their 1,829 trillion yen in financial assets, even if they are traditionally risk-averse with over 50 percent of assets in cash and deposits.

More than 80 percent of the shares will be offered to domestic retail investors, a person with knowledge of the matter told Reuters.

"I think a reasonable amount of money will be attracted to this one," said Tetsutaro Abe, an equity research analyst at Aizawa Securities. "It's a mobile company so the cash flow is steady. If you think about future yield and shareholder returns, it's a far more attractive investment than government bonds."

SoftBank Group hopes that putting a value on the telecoms business will help bolster its own share price, which it sees as undervalued.

Son in June argued that even without the domestic telecoms business, SoftBank Group shares should be worth over 14,000 yen - almost 40 percent over their current price - considering the value of its investments in Alibaba, Arm Holdings, Sprint Corp and Yahoo Japan Corp, as well as Vision Fund.

Investors have grown nervous about the lack of clarity in some of the investments by the $90 billion Vision Fund. They have also been worried about the fund's dependence on Saudi Arabia, its biggest backer, following the murder of a journalist by Saudi security officials.

Its shares closed mostly flat on Monday at 8,777 yen, down more than 20 percent since the killing in early October.

U.S. credit-rating firm S&P Global Ratings said the IPO was credit positive for the parent, saying it expects a bulk of the proceeds to be used to repay debt. The group's interest-bearing debt was nearly 18 trillion yen at end-September.

Nomura, Mizuho, Deutsche Bank, Goldman Sachs, JP Morgan and SMBC Nikko are joint global coordinators for the IPO.

(Reporting by Taiga Uranaka; Additional reporting by Kentaro Sugiyama, Sam Nussey, Chris Gallagher and Ran Kim; Writing by Ritsuko Ando; Editing by Christopher Cushing)

By Taiga Uranaka


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED 0.20% 243.46 Delayed Quote.4.40%
APPLE INC. -1.37% 127.14 Delayed Quote.-1.36%
JUST GROUP PLC -2.74% 79.65 Delayed Quote.18.53%
KDDI CORPORATION 1.24% 3278 End-of-day quote.6.91%
LETS HOLDINGS GROUP CO., LTD. 1.58% 7.72 End-of-day quote.-0.77%
LINE CORPORATION 0.00% 5350 End-of-day quote.0.00%
LOOK HOLDINGS INCORPORATED -1.07% 921 End-of-day quote.-3.76%
NTT DOCOMO, INC. 0.00% 3880 End-of-day quote.0.00%
SOFTBANK CORP. 0.55% 1361 End-of-day quote.5.26%
SOFTBANK GROUP CORP. -0.60% 8518 End-of-day quote.5.71%
SPRINT CORPORATION 0.00%End-of-day quote.0.00%
THE GLOBAL LTD. 2.04% 250 End-of-day quote.-3.85%
THE GOLDMAN SACHS GROUP, INC. -2.23% 301.01 Delayed Quote.14.88%
UBER TECHNOLOGIES, INC. -2.44% 55.52 Delayed Quote.11.59%
US DOLLAR / JAPANESE YEN (USD/JPY) 0.03% 103.873 Delayed Quote.0.62%
VISION INC. 4.21% 990 End-of-day quote.-4.44%
WILL GROUP, INC. -0.81% 976 End-of-day quote.-2.98%
Z HOLDINGS CORPORATION 1.49% 717.4 End-of-day quote.14.89%
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Financials
Sales 2021 1 178 B 11 346 M 11 346 M
Net income 2021 84 629 M 815 M 815 M
Net Debt 2021 91 272 M 879 M 879 M
P/E ratio 2021 42,9x
Yield 2021 1,24%
Capitalization 3 418 B 32 925 M 32 904 M
EV / Sales 2021 2,98x
EV / Sales 2022 2,52x
Nbr of Employees 14 168
Free-Float 53,8%
Chart Z HOLDINGS CORPORATION
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Z Holdings Corporation Technical Analysis Chart | 4689 | JP3933800009 | MarketScreener
Technical analysis trends Z HOLDINGS CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 10
Average target price 774,11 JPY
Last Close Price 717,40 JPY
Spread / Highest target 31,0%
Spread / Average Target 7,91%
Spread / Lowest Target -24,7%
EPS Revisions
Managers and Directors
NameTitle
Kentaro Kawabe President, CEO & Representative Director
Manabu Miyasaka Chairman
Ryosuke Sakaue Chief Financial Officer
Masatsugu Shidachi Chief Information Officer & Executive Officer
Chiaki Fujimon Chief Technology Officer
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