SoftBank Group Stock: IPO Postponed? - Capital Market Experts
Article excerpt
SB Energy, backed by SoftBank Group, is postponing the marketing of its planned IPO. The company is reacting to additional questions from the US Securities and Exchange Commission (SEC). At the same time, growing reservations in the capital market are causing restraint, as institutional investors are increasingly critically questioning the ambitious valuation approaches in the field of artificial intelligence.According to media reports, the delay is due to noticeable concerns from potential financiers regarding the targeted valuation of around 60 billion US dollars. A central point of criticism is the infrastructure developer's significant dependence on OpenAI as the main customer for future capacities. The connection between the players is closely linked. For a data center developed by SB Energy in the US state of Ohio, Nvidia secured a guarantee of up to 105 billion US dollars. This guarantee is intended to enable OpenAI to rent the location. In parallel, Nvidia is directly investing 1.5 billion US dollars in SB Energy.However, in this market environment, investors are increasingly demanding already operational capacities and long-term secured off-take agreements. The market's reluctance affects the Japanese technology group during a phase of high capital commitment. To finance its massive AI offensive, SoftBank issued dollar and euro bonds totaling the equivalent of 11.1...
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The majority of these funds are for financing the final payment of a follow-on investment in OpenAI amounting to 30 billion US dollars.
