SoftBank shares leap 14% on DoorDash investment gain By Reuters

© Reuters. FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo

By Chibuike Oguh and Sam Nussey

(Reuters) -SoftBank Group Corp shares surged 14% after the investment conglomerate scored a $11.2 billion gain in the value of its stake in DoorDash Inc following the U.S. food delivery app’s blockbuster stock market debut.

SoftBank, which invested $680 million in DoorDash in the last three years, saw the value of its 25% stake in the company rise to $11.9 billion on the first day of trading in New York.

SoftBank’s shares climbed as much as 19% in Tokyo trading and touched new two-decade highs.

DoorDash shares ended trading up 87.5% following their debut on Wednesday, valuing the company at $68.4 billion, more than four times its valuation in a private fundraising round six months ago.

SoftBank’s DoorDash gains is a boon to Chief Executive Masayoshi Son’s efforts to revive its $100 billion Vision Fund, which recorded a string of losses in the past year on soured bets ranging from office space-sharing start-up WeWork to dog-walking startup Wag.

Last month, SoftBank said its Vision Fund was now worth about $76.4 billion, slightly more than the $75 billion paid for its 83 investments, due mainly to the tech-fueled rebound in public markets from a coronavirus-induced downturn earlier this year.

SoftBank has had other investment wins of late, including a rally in the shares of ride-hailing app Uber Technologies (NYSE:) Inc, where it is a top shareholder, and the sale of semiconductor manufacturer Arm Ltd to Nvidia (NASDAQ:) Corp for $40 billion.

SoftBank’s Vision Fund had invested in DoorDash over four fundraising rounds. It paid $280 million for its first DoorDash stake in March 2018, before buying more shares over two rounds in the following year for about $350 million. The fund made its last DoorDash investment worth about $50 million in June 2020, according to regulatory filings.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *