Brokerages scramble on tepid investor response over SoftBank IPO

With parent company SoftBank Group expecting to raise up to 2.6 trillion yen ($23 billion) on the Tokyo Stock Exchange, question marks surround …

TOKYO — Mobile carrier SoftBank Corp.’s initial public offering set for Dec. 19 is oversubscribed by less than double — a level well below blockbuster Japanese stock debuts in recent memory that has left domestic brokerages reeling.

Investors’ apparent lack of appetite stems from last week’s massive service outage, as well as the drama surrounding Huawei Technologies, the Chinese telecommunications supplier with which SoftBank had done business. Making things worse, the parade of bad news arrived shortly before Friday’s subscription deadline.

With parent company SoftBank Group expecting to raise up to 2.6 trillion yen ($23 billion) on the Tokyo Stock Exchange, question marks surround what could be Japan’s biggest initial public offering in history.

One IPO manager at a major Japanese brokerage had to use every trick in the book to draw buyers for SoftBank. Unable to convince enough existing clients to subscribe, younger subordinates were enlisted to drum up new customers. They went as far as telephoning individuals with dormant accounts.

“We somehow managed to sell out,” said the manager.

The recent weeks have not been kind to SoftBank or the brokerages. The carrier sustained four and a half hours of nationwide service interruptions on Dec. 6, during the all-important book-building period that week.

“There were first-time IPO investors who were wondering if purchasing such a company’s shares is a good idea,” said a Japanese asset manager.

Then there is Huawei, whose equipment are subject to bans in the U.S., Australia and New Zealand due to security concerns. The Japanese government recently decided to bar state ministries from buying from the supplier.

“If Chinese base station equipment will be unusable in the future, that would change the outlook on [SoftBank’s] capital expenditures,” said a 33-year-old living in Japan’s Kanagawa Prefecture. “I’ve held doubts about the validity of the 1,500 yen offer price.” He eventually cancelled an order for 5,000 shares.

SoftBank has distanced itself from Huawei, deciding to replace all the Chinese company’s equipment in its 4G infrastructure.

Adding to SoftBank’s woes is a mix-up caused by SBI Securities, one of its lead underwriters. SBI held a lottery Monday to distribute SoftBank shares, only to notify some investors two days later that they were entitled to more shares. For example, an investor who subscribed for 1,000 shares would initially be given 100 shares in the lottery, then see the number rise to 300.

Twitter was abuzz with SBI clients dumbstruck by the news, with some saying they are unable to purchase the extra shares. Other posters speculated that the newly discovered shares actually came from cancelled orders. SBI maintains the correction was due to an error, and that it did not increase the number of shares investors are entitled to buy or allocate shares to those who initially were not chosen.

SBI said Friday it has finished selling its portion of SoftBank shares, the same day lead underwriters revealed the carrier was less than two times oversubscribed. That compares unfavorably to Mercari, the flea-market app oversubscribed 45 times for its June float, according to Tokyo-based data provider Capital Eye. Staffing group Recruit Holdings was roughly eight times oversubscribed, while Japan Post Holdings‘ multiple was around three.

The general caution over maiden stocks has also hurt SoftBank’s demand among investors. The IPO index, which tracks stocks that have listed within the past year, has plunged about 20% since the Nikkei Stock Average touched a year-to-date high in early October. These conditions are not likely to have energized retail investors for the megafloat.

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US officials pressure T-Mobile, Sprint parent companies to drop Huawei, too

A Nikkei report suggested Japan’s SoftBank Group Corp planned on replacing Huawei-made 4G network equipment in favor of Nokia and Ericsson …

It would appear that the United States Government is putting pressure on Huawei not only inside the USA, but abroad as well. On concerns that the brand Huawei is a sort of spy for the Chinese state, the US Government effectively carpet-bombed Huawei out of North America – getting all major carriers to drop all Huawei brand products in the process. Now it would seem that the US government wants not only T-Mobile and Sprint to continue to avoid Huawei, it wants their parent companies to drop Huawei hardware as well.

This is not the first time we’ve heard of the US government attempting to get Huawei banned from institutions outside the USA. Past reports suggest the USA attempted to get international groups to get rid of Huawei networking gear in and around US military bases. US officials apparently spoke with counterparts in Germany, Italy, and Japan.

In a report this afternoon, a Reuters report shows US officials again targeting Huawei in business dealings. People familiar with the matter suggested that both T-Mobile US Inc and Sprint Corp have “said they would consider curbing their use of equipment from China’s Huawei Technologies,” in order to gain favor with a U.S. national security panel so that their merger might be approved. T-Mobile is currently in negotiations to acquire Sprint in the USA in a $26 billion deal.

• Deutsche Telekom AG (German) is majority owner of T-Mobile USA

• SoftBank AG (Japanese) is majority owner of Sprint (USA)

US government officials “have been pressuring T-Mobile’s German majority owner, Deutsche Telekom AG, to stop using Huawei equipment” because Huawei might be used for cyber espionage on behalf of the Chinese state, according to sources speaking with Reuters this week. “That pressure is part of the national security review” of the acquisition deal.

For their part, an official Deutsche Telekom representative suggested that they were reviewing vendor plans in the countries it operates “given the debate on the security of Chinese network gear.” A Nikkei report suggested Japan’s SoftBank Group Corp planned on replacing Huawei-made 4G network equipment in favor of Nokia and Ericsson gear.

Their report suggested that the move “reflects rising security concerns over potential leaks of sensitive information, system shutdowns and other risks involved in using Chinese telecommunications equipment.” While this equipment would’ve been replaced eventually anyway, due to the move to 5G equipment, this move was done apparently due to Japanese government pressure.

“It’s extremely important to avoid buying equipment that includes malicious functions like stealing or destroying information or halting information systems,” said Japan’s Prime Minister Shinzo Abe. Other major carriers in Japan (NTT Docomo and KDDI) will also refrain from using any China-made equipment in their upcoming 5G network.

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Green Bay restaurants warn customers about DoorDash

Action 2 News crews reached out to every Green Bay restaurant listed on DoorDash’s website. Out of 83 restaurants, 59 said they were not associated …

GREEN BAY, Wis. (WBAY) — Restaurants across Green Bay are warning customers about a food delivery service that many aren’t associated with.

It’s a service called DoorDash, claiming to be a restaurant partner, without the restaurant’s permission.

“My vendor called me one morning and said, ‘I didn’t know you were delivering food.’ And I said, ‘I didn’t either,'” Andy Mueller said.

Chef Andy Mueller, owner of Galley 57, says the DoorDash website used his name, logo and menu, all without his permission.

“They tried to make it seem like this is going to be beneficial,” he says. “And I said, ‘You know that’s not really the point. The point is, you’re using my logo and my business name without my permission.’”

Action 2 News crews reached out to every Green Bay restaurant listed on DoorDash’s website. Out of 83 restaurants, 59 said they were not associated with DoorDash.

Some said DoorDash has caused more harm than good: sometimes getting the menu wrong or charging customers for food that is never delivered.

Some restaurants, like Tuscon’s Southwest Bar & Grill, don’t offer food delivery at all. Owners and managers say that’s what makes DoorDash so problematic.

“You don’t know who is taking your food, bringing your food. They’re not affiliated with us. So if they damage our reputation, we lose out,” says Steve Paustenbach, general manager for Tuscon’s.

Action 2 News reached out to DoorDash for a comment but were unable to contact customer service. DoorDash provided us a written statement which said in part, “For those not interested in being on DoorDash for any reason, we immediately remove them from the platform upon their request.”

Both Galley 57 and Tucson’s have been taken off the DoorDash website after asking to be removed.

In the end, restaurant owners are hoping to spread the word about the delivery service.

“I hope that other restaurants get the message that you could be on their website and you could open yourself up for some issues,” Mueller says.

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T-Mobile-Sprint merger approval might hinge on…Huawei?

However, the approval might hinge on an unexpected requirement: that Deutsche Telekom AG (T-Mobile’s parent company) and SoftBank Group Corp …

  • The T-Mobile-Sprint merger could see U.S. regulator approval as early as next week.
  • It appears the approval of the merger hinges on both companies’ parent companies refusing to use Huawei equipment.
  • Governments worldwide are rejecting the use of Huawei equipment, citing security concerns.


The long-gestating proposed merger between U.S. carriers T-Mobile and Sprint might finally gain regulatory approval as early as next week. According to a recent report from Reuters, the government regulatory bodies involved with approving the merger agree that it can move forward.

However, the approval might hinge on an unexpected requirement: that Deutsche Telekom AG (T-Mobile’s parent company) and SoftBank Group Corp (Sprint’s parent company) refuse to use Huawei equipment in their respective worldwide networks.

Both parent companies said, according to Reuters, that they are “considering” adhering to the requirement to get the deal to go through.

Currently, neither T-Mobile or Sprint use Huawei network equipment in the United States. However, both SoftBank and Deutsche Telekom use Huawei equipment for their respective networks worldwide. The approval of the T-Mobile-Sprint merger would require both companies to slowly phase out Huawei equipment currently in use and refuse to buy Huawei equipment going forward.

The source for this Reuters report says that U.S. government officials have been pressuring Deutsche Telekom, in particular, to stop using Huawei equipment, citing security concerns related to Huawei’s alleged ties to the Chinese government.

Huawei has repeatedly asserted that these security concerns are unfounded. However, several countries — including the U.S., Australia, and Japan — refuse to use Huawei equipment for all or some networking purposes.

If the T-Mobile-Sprint merger approval does go through, it would cut the “Big Four” carriers down to the “Big Three,” with the other remaining U.S. carriers being AT&T and Verizon. The combined T-Mobile-Sprint company would simply be known as T-Mobile.

NEXT: What would the T-Mobile-Sprint merger mean for you?

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Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) Weekly Ratings as of Dec 14, 2018

Moreover, Benchmark Capital Advsrs has 1.55% invested in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Aerie Pharmaceuticals, Inc. registered …

During Q3 2018 the big money sentiment increased to 1.57. That’s change of 0.35, from 2018Q2’s 1.22. 16 investors sold all, 38 reduced holdings as Aerie Pharmaceuticals, Inc. ratio increased. 58 grew stakes while 27 funds amassed stakes. Funds hold 43.94 million shares thus 9.94% more from 2018Q2’s 39.97 million shares.

Sectoral Asset Management reported 5.08% of its capital in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Gw Henssler & stated it has 0.03% of its capital in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). 15,200 were accumulated by Dekabank Deutsche Girozentrale. 339 were accumulated by Tower Capital Limited Liability Corp (Trc). Pub Employees Retirement Association Of Colorado reported 0% in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Utd Service Automobile Association accumulated 0% or 5,982 shs. The Pennsylvania-based Sei Invests Company has invested 0% in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Federated Pa reported 0% of its capital in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Bank Of Montreal Can has invested 0% in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Alps Advsr holds 80,025 shs or 0.03% of its capital. United Advisers Lc stated it has 0% of its capital in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI). Fmr Ltd Liability Corporation owns 975,003 shs. Macquarie Ltd invested in 0.01% or 80,674 shs. Balyasny Asset Management Limited Liability Company, Illinois-based fund reported 322,183 shs. Moreover, Benchmark Capital Advsrs has 1.55% invested in Aerie Pharmaceuticals, Inc. (NASDAQ:AERI).

Aerie Pharmaceuticals, Inc. registered $20.70 million net activity with 1 insider buy and 9 selling transactions since July 2, 2018. On Thursday, September 13 Shares for $2.08 million were sold by RUBINO RICHARD J. On Monday, August 27 MITRO THOMAS A sold $11.45 million worth of Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) or 190,000 shs. On Friday, November 16 the insider Cagle Gerald D. bought $83,493.

Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) Ratings Coverage

In total 2 analysts cover Aerie Pharmaceuticals (NASDAQ:AERI). “Buy” rating has 2, “Sell” are 0, while 0 are “Hold”. 100% are bullish. 2 are the (NASDAQ:AERI)’s analyst reports since September 11, 2018 according to StockzIntelligence Inc. On Tuesday, September 11 the firm has “Buy” rating given by Stifel Nicolaus. Listed here are Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) PTs and latest ratings.

13/11/2018 Broker: Oppenheimer Rating: Outperform New Target: $64 Initiates Coverage On

11/09/2018 Broker: Stifel Nicolaus Old Rating: Buy New Rating: Buy Old Target: $80 New Target: $87 Maintain

AERI reached $38.12 during the last trading session after $0.89 change.Currently Aerie Pharmaceuticals, Inc. is downtrending after 30.47% change in last December 14, 2017. AERI has also 383,899 shares volume. AERI underperformed by 30.47% the S&P500.

Aerie Pharmaceuticals, Inc., a clinical-stage pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma and other eye diseases.The firm is valued at $1.73 billion. The Company’s lead product candidate includes Rhopressa, a once-daily eye drop for the reduction of intraocular pressure in patients with glaucoma or ocular hypertension.Last it reported negative earnings. The firm is also developing Roclatan, a once-daily eye drop to reduce IOP that is in Phase III registration trials to treat patients with open-angle glaucoma and ocular hypertension.

For more Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) news released recently go to: Nasdaq.com, Benzinga.com, Businesswire.com, Streetinsider.com or Seekingalpha.com. The titles are as follows: “Aerie (AERI) Earnings Miss in Q2, Rhopressa Performs Well – Nasdaq” released on August 09, 2018, “Daily Biotech Pulse: FDA Nod For Mallinckrodt’s Pain Drug, AbbVie-Neurocrine Report Positive Elagolix Results – Benzinga” on November 15, 2018, “Aerie Pharmaceuticals Announces Appointment of Damien Monaghan, Quality Director – Business Wire” with a publish date: September 24, 2018, “Baker Bros. Advisors 13F for Quarter Ended Sept. 30, 2018 – StreetInsider.com” and the last “This May Be A Good Time To Pick Up Aerie Pharmaceuticals In 2018 – Seeking Alpha” with publication date: October 30, 2018.

Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) Analyst Ratings Chart

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