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Japan’s SoftBank sets indicative IPO price at Y1,500 per share



FILE PHOTO – The logo of SoftBank Group Corp is seen at the company’s headquarters in Tokyo, June 30, 2016. REUTERS/Toru Hanai

TOKYO (Reuters) – SoftBank Corp has set an indicative price of 1,500 yen ($13.23) per share for its initial public offering (IPO), a regulatory filing showed on Friday, making the deal worth 2.4 trillion yen ($21.16 billion) in one of the world’s biggest-ever listings.

The price was unchanged from an initial estimate of 1,500 yen that the domestic telecoms unit of Japan’s SoftBank Group Corp announced when it launched the IPO earlier this month.

In IPOs, companies usually set an indicative price range – rather than just an indicative price – after receiving feedback from institutional investors on initial price estimates.

The IPO is aimed at providing the SoftBank group with funds to pay down debt and place big bets on innovations that Chief Executive Masayoshi Son predicts will drive future trends in technology.

The final offer price will be determined on Dec. 10 after the book-building process, in which underwriting banks receive buy orders from prospective investors. The stock is scheduled to begin trading on Dec. 19.

Reporting by Taiga Uranaka; Editing by Christopher Cushing