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SoftBank stands to haul in $5.6bn in unrealized gains from Uber IPO

Masayoshi Son's company will have to wait six months if it wants to lock in gains

Softbank Group bought a stake in Uber Technologies in January 2018.

TOKYO -- SoftBank Group, the top shareholder in Uber Technologies, anticipates $5.6 billion in unrealized gains after the U.S. ride-hailing pioneer makes its stock market debut in New York later on Friday.

SoftBank, headed by Chairman and CEO Masayoshi Son, bought a stake in Uber in January 2018.

If the market capitalization after Uber's initial public offering reaches the $82 billion that can be assumed from the offering price announced on Thursday, the unrealized gains on SoftBank's holdings would come to $5.6 billion.

SoftBank, which holds 16.3% of Uber, will have to wait six months before it can lock in any gains because of a provision that prohibits the ride-hailer's existing investors from selling their holdings for about a half year after the IPO.

The offering price of $45 per share is close to the lower end of a provisional range of between $44 and $50 that Uber used in its listing application, submitted in late April.

SoftBank's Uber holdings would show fewer unrealized gains if Uber's share price falls after the listing.

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