SB Energy Faces Investor Skepticism in IPO, Report Says

SB Energy’s initial public offering is facing investor skepticism, The New York Times reported Monday.

The SoftBank majority-owned company is planning to raise $5 billion to $7 billion in a public offering to help develop a massive data center complex OpenAI plans to lease, which is set to be backed with a $105 billion credit guarantee from Nvidia and use Nvidia chips. Nvidia has pledged to invest up to $3 billion in the IPO, The Information first reported. But investors have been worried about the high expected valuation of $50 billion, the report said.

The IPO was expected to list as soon as this month but it’s more likely to happen next month, the report said. SB Energy, which currently generates revenue from the sale of electricity to power authorities, had no data center capacity operating but reported future contracted revenue of $439 billion, per a securities filing earlier this month.