SoftBank Group Corp. has begun preparations to float shares of its domestic telecom unit SoftBank Corp. in 2018.
SoftBank Group said the IPO will enable "greater clarity" on the separation of its investment and telecommunications activities, in order to "better respond to the various needs of investors."
The public listing is also expected to give SoftBank Corp. "greater managerial autonomy" to chart its own growth strategy.
SoftBank Corp. will remain a unit of SoftBank Group in the case of an IPO. However, SoftBank Group may decide not to proceed with the flotation after considering reviews made during ongoing preparations.
Earlier reports said an IPO for SoftBank Corp. could be worth some $18 billion. SoftBank Group reportedly plans to list its unit both on the Tokyo Stock Exchange and internationally — potentially in London. It would aim to sell about 30% of the unit and keep the remaining 70%.
Funds raised from the potential IPO would reportedly be used for future investments and expansion, particularly on strengthening its financial position and investments for a new area.
SoftBank Group's recent activities focused on investing in various companies. It acquired a 51% stake in Line Corp. unit Line Mobile as part of a strategic partnership, as well as led investments in ride-hailing company Uber Technologies Inc. and U.S. construction technology startup Katerra Inc.
