SoftBank raises $799 million in Japan's first bond-type stock listing
SoftBank Group has raised 120 billion yen (around $799 million) in Japan's inaugural bond-type share listing on the Tokyo Stock Exchange. The stocks traded at 4,035 yen, surpassing the initial offer price of 4,000 yen, thanks to robust interest from both retail and institutional investors. SoftBank CEO Junichi Miyakawa expressed astonishment at the high demand, noting that the funds would be allocated toward the company's mid-term objectives, including the creation of "next generation social infrastructure."
SoftBank to develop LLMs with raised funds
The capital raised by SoftBank will be channeled toward advancing Japanese large language models (LLMs) developed in-house. The firm recently revealed the launch of a computing platform designed to establish an LLM by 2024. The bond-type shares provide a fixed dividend of 2.5% and can be bought back by SoftBank after five years. This distinctive offering was mainly aimed at retail investors but has attracted considerable attention from both retail and institutional ones.
Bond-type shares attract investors with tax-efficient NISA accounts
Unlike corporate bonds, SoftBank's bond-type shares can be acquired through the tax-friendly Nippon Individual Savings Account (NISA). Joint book-runners for the listing highlighted that this aspect boosted the appeal for individual investors. They explained, "This product has played a role in promoting the transition from savings to investment in the context of rising interest rates and the diminishing appeal of traditional bank deposits." This is in line with Japan's strategy to promote household savings for investment.
