• SoftBank is lining up a syndicate of top-tier banks to lead the initial public offering of its renewable energy arm, SB Energy, according to people familiar with the matter.
  • The IPO is part of SoftBank’s strategy to monetize its energy portfolio and raise capital for its core technology investments, including AI and telecom.
  • The deal underscores strong investor appetite for renewable energy assets amid favorable policy support and growing demand for clean energy infrastructure.

Major Banks Mandated for SB Energy Listing

SoftBank Group has mandated JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup and Mizuho Financial Group to manage the IPO of SB Energy, its renewable energy subsidiary, according to sources with knowledge of the process. The banks are expected to play lead roles in underwriting the offering, which could value SB Energy at several billion dollars.

SB Energy develops and operates solar and wind projects primarily in the U.S. and Japan, and has a pipeline of utility-scale assets. The company has been a key part of SoftBank’s push into decarbonization, alongside its broader technology bets.

A Shift Toward Monetization

The IPO marks a strategic shift for SoftBank, which has historically held onto its energy assets as long-term investments. By taking SB Energy public, the group aims to unlock value and redeploy capital into high-growth areas such as artificial intelligence and telecommunications infrastructure. SoftBank has been actively investing in AI through its Vision Fund and partnerships, including its involvement with OpenAI.

The move also comes at a time when renewable energy IPOs are gaining traction, supported by favorable interest rate expectations and government incentives like the Inflation Reduction Act in the U.S., which provides tax credits for solar and wind projects. SB Energy’s portfolio is well-positioned to benefit from these tailwinds.

Underwriting Dynamics and Market Reception

The selection of five major banks reflects the scale and complexity of the deal, which is expected to attract significant investor interest. JPMorgan and Goldman Sachs are seen as joint lead bookrunners, while Morgan Stanley, Citi and Mizuho will also play key roles in marketing the shares. Mizuho’s involvement highlights the Japanese connection, as SoftBank is a Japanese conglomerate with strong ties to domestic lenders.

“This is a landmark transaction that will test the market’s appetite for pure-play renewable energy assets with a tech-forward parent,” said a senior banker involved in the process, who asked not to be named because the discussions are private. “SB Energy offers scale and a development pipeline that few peers can match.”

Challenges and Considerations

However, the IPO market for energy companies has been volatile, with some renewable listings trading below their issue prices amid concerns about project delays and rising costs. SB Energy’s valuation will depend on the strength of its contracted revenue, the quality of its development pipeline, and the stability of its regulatory environment.

SoftBank has declined to comment on the IPO plans. A representative for SB Energy did not respond to requests for comment.

Looking Ahead

The timeline for the IPO remains unclear, with sources cautioning that the deal could be delayed depending on market conditions. SoftBank is expected to retain a majority stake in SB Energy post-IPO, allowing it to consolidate the subsidiary’s financial results while providing a public currency for future acquisitions or employee incentives.

If successful, the listing would be one of the largest renewable energy IPOs in recent years and a major win for SoftBank’s capital allocation strategy.

Correction: An earlier version of this article misstated the number of banks mandated. Five banks have been appointed, not four.