As Uber’s biggest shareholder, SoftBank Group had high hopes for the ridesharing company’s stock market debut last week. Instead, the Japanese conglomerate’s shares have been sliding along with Uber’s following its disappointing initial public offering. SoftBank shares began sliding at the end of last week after Uber set its IPO price at the low end of its planned range. Since the start of trading on Friday morning, SoftBank Group shares have fallen 14.4% in value, from 11,700 yen (about $106.69) to 10,020 yen (about $91.37)
On paper, SoftBank Group, which became an investor in Uber in early 2018, had expected to make a profit of $3 billion from its debut. According to its IPO filing, SoftBank Group is Uber’s largest shareholder, owning 16.3% of pre-IPO shares through its Vision Fund.
After shares continued falling on their second day of trading, Uber CEO Dara Khosrowshahi told employees in a memo that “like all periods of transition, there are ups and downs. Obviously, our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it relates to our stock.”
All major market indexes fell on Monday as the China-U.S. trade war continued to escalate, with China planning to raise customs on American imports after the U.S. increased tariffs on Chinese goods last week.