SoftBank loses $16b in market value amid Uber’s tanking IPO
SoftBank Group, a leading investor in Uber, has lost roughly US$16 billion in market value in the past three trading days following the ride-hailing giant’s tanking initial public offering.
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The Japanese conglomerate owns nearly 13% of Uber through its SoftBank Vision Fund. Its shares fell as much as 6.4% today.
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Masayoshi Son at SoftBank World 2016 / Photo credit: SoftBank
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The drop followed Uber closing 11% lower at US$37.10 yesterday. Masayoshi Son’s paper gains on Uber is on pace to be wiped away after SoftBank bought shares in the ride-hailing company at an average price of US$34.50 apiece.
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Uber is only the second ride-hailing company to hit the US public market, with the first one being its competitor Lyft. Lyft’s stock is diving alongside its rival, closing at US$47.54 yesterday. That puts it roughly 35% below its opening trade price and around 20% below its initial pricing.
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Uber’s current situation also raised concerns on WeWork, another money-losing giant where SoftBank is the biggest shareholder, as the company recently announced plans to list publicly.
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Under its US$100 billion Vision Fund, Son has invested US$10 billion into China’s Didi, US$3 billion into Singapore-based Grab, and US$2.25 billion in General Motor’s self-driving unit Cruise.