SoftBank-backed SB Energy aims to raise $500 million from Japan for U.S. IPO
Proceeds will be used to develop and build infrastructure including data centers and power plants.
SB Energy, a data center company backed by SoftBank Group, is seeking to raise up to $500 million from Japanese investors for its upcoming initial public offering (IPO) in the United States. This follows other significant deals that have tapped into Japan's substantial pools of capital. The company began accepting investor orders this month, as per a recent filing with a local regulatory body.
The funds raised will be utilized for developing and constructing infrastructure, such as data centers and power plants. Key investors in SB Energy include OpenAI and Nvidia, both of which hold strategic stakes in the company. Mizuho Financial Group, along with several other Japanese financial institutions, will serve as the selling agents for the U.S. listing of the IPO, according to the regulatory filing.
Mizuho is among the parties coordinating the listing process. The IPO aims to leverage Japan's household financial assets, valued at approximately $15 trillion, much like the highly successful SpaceX IPO in June, which raised $2.2 billion from Japanese investors. Such local offerings in Japan are relatively rare, with only one Japanese IPO raising at least $500 million this year, that of taxi operator Go in June.
The SB Energy IPO presents a unique opportunity for Japanese investors to participate in the burgeoning demand for AI infrastructure. The offering is anticipated to contribute $20 trillion to the global economy by 2030, as estimated by IDC. In the energy sector specifically, UBS Group analysts predict that $511 billion will be spent on power infrastructure by 2030, driven largely by data center expansion.
SB Energy's operations encompass data centers, solar power, and battery energy storage systems. The company has contracted or is constructing 8.8 gigawatts of data center capacity across its facilities in Texas and Ohio, along with 5.5 gigawatts of power projects. Additionally, SB Energy has issued 3.99 million warrants to OpenAI, some of which have already vested, with the remaining 2.25 million set to expire in 2036.
Nvidia has committed to purchasing $1.5 billion worth of nonvoting shares in a private placement at the IPO price.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
