New Delhi
Shares of Japan’s SoftBank Group plunged 13 per cent on the Tokyo Stock Exchange after reports suggested that OpenAI may postpone its highly anticipated initial public offering (IPO). The sharp decline reflected growing investor concerns over the delayed monetisation of SoftBank’s substantial investment in the artificial intelligence company.
According to multiple media reports, SoftBank recorded its steepest intraday decline in more than three months as investors reassessed expectations surrounding OpenAI’s public listing. The Japanese technology investor has invested heavily in the ChatGPT maker, with its total stake expected to reach nearly $65 billion by October.
Reports indicate that advisers to OpenAI have warned that continued volatility in global technology stocks could weaken investor demand for a public offering. As a result, the company may delay its IPO until next year instead of proceeding with a listing in the near term.
Expectations of an imminent OpenAI IPO had significantly boosted SoftBank’s share price over recent months, helping the company’s market capitalisation surpass that of Toyota Motor Corp. Investors viewed the potential listing as a major catalyst that could unlock substantial value from SoftBank’s extensive portfolio of technology investments.
A successful IPO would also provide a transparent market valuation for OpenAI, making it easier for investors to assess the worth of SoftBank’s holdings. Analysts believe such clarity could reduce the long-standing valuation discount at which SoftBank’s shares have traditionally traded.
OpenAI, led by Chief Executive Officer Sam Altman, recently filed confidential paperwork with the US Securities and Exchange Commission for a proposed IPO. The company is reportedly working with Goldman Sachs and Morgan Stanley on preparations for the offering, although no official timeline has been announced.
The uncertainty surrounding the listing has heightened market caution, with investors closely monitoring developments that could influence both OpenAI’s public debut and SoftBank’s future valuation.
