<b>Softbank</b> $30m share issue fails on penny-stock fiasco | RetailTechPodcast

Softbank $30m share issue fails on penny-stock fiasco

A proposed HK$30 million share placement by investment firm Softbank Investment International has fallen through because of a sharp fall in its share price following the penny-stock fiasco. Sources familiar with the Softbank situation said potential investors had decided to walk away from the fund-raising exercise after the stock plunged below the placing price of 30 HK cents per share. The stock had fallen 43 per cent to 17 HK cents yesterday from June 14, which was the last trading day ahead of the announcement of the proposed share placement. The stock fall intensified on July 26, at 22 per cent, following a Hong Kong Exchanges and Clearing revelation of plans to delist penny stocks. On that day, Softbank was among 200 penny stocks that saw their share prices plummet as the local market lost an estimated HK$10 billion in value. Brokers said the ill-fated share placement came at an unfortunate time as the stock market weakened in the past couple of months on the back of negative news from the United States. Softbank officials declined to comment on the share placement yesterday. Read more