News: SoftBank reaps $33 billion Coupang windfall.
(Reuters) – SoftBank Group Corp made approximately $ 33 billion on paper Thursday from the public market debut of South Korea’s largest e-commerce company, Coupang Inc. This is the latest sign of a dramatic turnaround for its $ 100 billion Vision fund.
Coupang shares opened 81% above their offering price Thursday after raising $ 4.6 billion in the largest initial public offering in the US stock market this year.
SoftBank paid around $ 3 billion for a 37 percent stake in the company, according to sources familiar with previous fundraisers, which translates into roughly $ 33 billion in profit if prices hold up.
Coupang’s hugely successful public launch is welcome news for SoftBank, which is grappling with the collapse of billions of dollars tied to UK start-up Greensill Capital, Supply Chain Finance.
Vision Fund is Greensill’s largest donor.
The Japanese conglomerate reported last month that net income rose more than 20 times in the third quarter thanks to a rebound in the Vision Fund, a giant venture capital operation known for investing early in Uber and other tech-industry startup successes .
Just a year ago, SoftBank was hit by the IPO and depreciation of office sharing company WeWork, raising questions about whether Chief Executive Officer Masayoshi Son had lost his Midas touch and threatening plans to replace Vision establish.
The COVID-19 pandemic has also forced Son to sell assets, but a second deal reported by Reuters on Thursday bodes well for VF II, a second, smaller fund.
The $ 225 million late-stage funding round for the healthcare startup Forward Health was the first major investment this year after the group’s activities and assets increased in the second half of 2020.
The Vision Fund also made $ 11 billion on a blockbuster launch of DoorDash Inc in December that saw the grocery shipping company worth more than $ 70 billion.
Home seller Opendoor Technologies Inc’s initial listing in December has also been improved.
The fund still holds large stakes in China’s largest hail-fighting company Didi, as well as in Uber’s Southeast Asian rival Grab.
SoftBank is also trying to break the madness for special-purpose acquisition companies by launching a handful of blank check firms this year, though none of them have yet found investment targets.
SoftBank did not immediately respond to a Reuters request for comment.
Reporting by Noor Zainab Hussain in Bengaluru; Adaptation by Patrick Graham and Shounak Dasgupta
Original Source © Reuters