According to reports from CNBC TV18, SoftBank Group shares surged up to 20% on Thursday, May 21, breaking a five-day losing streak. The Masayoshi Son-led company's stock was trading 19% higher at 5,993 JPY on Thursday, bringing the year-to-date gains to 30%. The rally was driven by three key factors closely tied to the AI boom, where SoftBank has made massive investments in companies related to artificial intelligence. As per ETMarkets, this surge represents the biggest intraday gain since March 2020, marking a significant recovery from recent financial concerns.
According to ETMarkets reports citing sources, OpenAI is preparing to file for an IPO in the coming weeks and is targeting a public debut sometime in the fall. The ChatGPT creator is working with Goldman Sachs and Morgan Stanley to make a confidential IPO filing as soon as Friday, though the exact timing remains uncertain. SoftBank holds an approximately 13% stake in OpenAI, making it one of the largest shareholders. The company has invested more than $30 billion in OpenAI and its investment gains are worth over $45 billion for the year that ended in March. The news of OpenAI's listing, though known, propped up shares of ARM as well on Wednesday following the OpenAI IPO news.
As reported by CNBC TV18, SB Energy Corp. announced Wednesday that it would file a confidential draft registration statement for a proposed IPO in the US. The company has already raised $1.8 billion from SoftBank, OpenAI and Ares Management over the last year to fund its data center expansion plans. Initially a solar and battery storage developer, SB Energy has expanded its portfolio to include natural gas and building digital infrastructure for data centers. In February, SB Energy announced a plan for a 9.2 GW natural gas power plant at an estimated cost of $33 billion, which would power SoftBank's 10 GW AI data center complex in Ohio.
According to ETMarkets analysis, the wave of public listings could deliver a two-pronged boost to SoftBank's balance sheet, including sweeping away questions about valuation. As per Bloomberg Intelligence analysts Kirk Boodry and Chris Muckensturm, these offerings would potentially shrink the company's discount to net asset value, which is back in the high -20% range. The analysts noted that these offerings would shorten the company's path to self-funding, easing SoftBank's capital burden and freeing up liquidation for additional investments. Fund manager Ikuo Mitsui at Aizawa Securities highlighted that the shift toward liquid assets is positive, as it addresses concerns about liquidity and fair market value determination that have plagued SoftBank's unlisted investments in the past.
