OpenAI delays IPO, dealing a heavy blow to SoftBank! With a $65 billion exposure facing a major liquidity test, the stock price plunges 13%, marking the largest drop in two years.

OpenAI delays IPO, dealing a heavy blow to SoftBank! With a $65 billion exposure facing a major liquidity test, the stock price plunges 13%, marking the largest drop in two years.

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SoftBank shares posted their biggest drop since August 2024. The market is concerned that OpenAI may postpone its initial public offering (IPO) until next year, which means the return timeline for its Japanese investor will also be delayed accordingly.

According to plan, by October, SoftBank's investment in OpenAI will reach approximately $65 billion. The market had previously widely expected that OpenAI's listing would bring SoftBank substantial book profits. This anticipation had driven SoftBank's share price to new highs repeatedly and helped its market value surpass Toyota last month.

Earlier Wallstreetcn article reported that recent volatility in tech stocks and the pressure on SpaceX's share price after its IPO may dampen retail investors' enthusiasm for OpenAI's listing, which might be postponed to 2027. Influenced by this news, SoftBank shares plunged 13% on Friday.

Resona Holdings strategist Hiroki Takei stated that once OpenAI goes public, it will provide an open and transparent market valuation for this key asset in SoftBank’s massive investment portfolio. SoftBank currently holds shares in hundreds of unlisted startups, so public market pricing is of significant importance.

He believes that if OpenAI successfully lists, it will be much easier for investors to assess the overall value of SoftBank’s investment portfolio. This transparency is expected to narrow the “conglomerate discount” that has long been imposed on SoftBank by the market, and reduce the risk premium demanded by investors. Takei stated:

"News of the IPO delay will naturally weaken this expectation in the market."

According to previous media reports, Altman expects OpenAI to IPO within the next year.

On Friday, SoftBank was the worst performer in the Nikkei 225 index. Dragged down by worsening sentiment in tech stocks, this chip-focused Japanese benchmark index fell 4.2% on the day, with Asian tech stocks overall under pressure.

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