Japanese telecommunications giant SoftBank expects to acquire $4.6 billion from Alibaba Group Holding's share lisiting.
The Japanese telecommunications and Internet company is expecting to earn big money from officially traded shares of Alibaba on New York Stock Exchange.
The Chinese online retailer jumped 38 percent on its first day of trade on Friday's New York Stock Exchange, earning Softbank a total of 500 billion yen, or $4.6 billion
Alibaba made the largest Initial Public Offering (IPO) in history last Friday, Sept 19. selling its shares to the public, reportedly amassing $24.3 billion.
The Chinese e-commerce giant's asset value increased following the IPO and also from the conversion of preference shares to common stock in relation to the share llisting.
SoftBank is expecting 500 billion yen gain in the half-year to end-September from the Alibaba deal.
Softbank CEO Masayoshi Son stated that he would be willing to buy more shares of Alibaba.
Moreover, the Son emphasized that the company is perfectly happy about the 32 percent stake. Softbank is now reported to be Alibaba's biggest shareholder.
The Japanese carrier would provide additional information regarding its gain once the final amount is calculated.
However, SoftBank dropped 44 percent to 8,354 yen today after Alibaba went public to sell their shares. Investors reportedly bought shares of SoftBank to indirectly acquire shares of Alibaba.
Now, investors can buy Alibaba shares directly without going through SoftBank.
"Softbank will lose its proxy appeal after Alibaba's listing," as quoted by Amir Anvarzadeh, manager of Japanese equity sales at BGC Partners Inc. in Singapore.
SoftBank, Japan's third largest carrier had gained 29 percent between Aug. 8 and Alibaba's IPO in New York on Sept. 19
SoftBank offers services and has several businesses in broadband, fixed-line, telecommunications, e-commerce, Internet, broadmedia, finance and marketing.
Meanwhle, the Japanese company acquired 80 percent of Sprint, a U.S. telecommunications holding company and major global internet carrier in 2011.
