Softbank mulls float for $100bn Vision Fund as it looks for fresh cash injection
Japanese investment giant Softbank is reportedly considering an initial public offering (IPO) of its $100bn (£77bn) Vision Fund.
The firm is mulling the bumper float as part of series of options as it looks to raise more funds for its investment arm, the Wall Street Journal reported, citing people familiar with the matter.
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The company is also said to be moving ahead with plans to launch a second fund similar in size to the Vision Fund, a proposal that has previously been raised by founder and chief executive Masayoshi Son.
Softbank is currently in negotiations with Oman over a multi-billion dollar investment in its existing fund, which has raised most of its money from Saudi Arabia and Abu Dhabi, according to the report.
The mooted cash injections come after a bumper period of investment for the fund, which has burnt through almost all the money in only two years. Softbank had originally planned to invest its money over four years, one source told the Wall Street Journal.
Son has reportedly secured a number of informal deals in China worth billions of dollars that the company does not yet have.
Softbank will raise cash from the upcoming IPOs of Uber and Wework, two of its most notable investments. However, the floats could reduce Softbank’s appeal to investors ahead of its own potential IPO.
The Japanese firm could also face regulatory barrier due to rules designed to prevent amateur investors from putting money into risky venture capital funds.
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Softbank executives are looking for ways to overcome these restrictions, the newspaper reported, but they could prove fatal to the planned float.
Softbank has been contacted for comment.