Sam Nussey

TOKYO (Reuters). Alibaba (NYSE) – The registration of American Depository Shares in addition to the previous transaction is unrelated to future deals by SoftBank Group Corp. This was confirmed Wednesday by a spokesperson from SoftBank Group Corp.

SoftBank stated in a statement that it was not connected to any future transactions by SBG, and said the registration of ADR conversion facilities (F6 file, filed by Alibaba) included its size.

Alibaba, an e-commerce company filed last week to add one billion American Depository shares. This is a major move. Citigroup Analysts at the NYSE stated this week that SoftBank could also be selling intentions.

Citi analysts, including Alicia Yap, wrote that Softbank (OTC) was a preIPO investor and we think a significant portion of these shares are not yet registered as ADS.

According to an anonymous source familiar with the matter, Masayoshi Son, Chief Executive of SoftBank told analysts that he was surprised and hadn’t requested the filing.

Citi said that Alibaba might have “registered in advance large numbers of ADS in support of any future conversion plans by shareholders,” in a Wednesday note.

SoftBank owns a 25% stake in Alibaba, which is valued at around $82 Billion. Its origins are a 2000 investment of $20 M. SoftBank has a market capitalization around $80billion, and this is what SoftBank owns.

Alibaba’s share price has fallen 60% in the face of regulatory restrictions against Chinese tech firms.

SoftBank used Alibaba shares to secure loans. In the past, it also reduced its stake by using derivative transactions in order to take advantage of any increase in Alibaba’s share prices.

Investor attention is on the potential actions of the group to raise capital as it increases investing through its Vision Fund or buys back shares following the collapsed deal to sell chip maker Arm (NASDAQ:).

SoftBank shares increased by 5.6% in Tokyo morning trading. Alibaba’s Hong Kong shares were also up 6%.