 Asset class analysis: Why did you select this particular asset class for the client and

why should they should be interested this trading idea?

Equities was chosen for the client as it promises a growth opportunity for the investor over a
long-term period. Soft bank is one of the leading startup investment funds in the world makes
it a desirable opportunity for the any client. News has surfaced that the Softbank would be
setting up a SPAC in the coming weeks, which would be handle by Softbank’s Vision Fund 2
Investment Advisors, and the firm is in talks with Citigroup and Goldman Saches to take it
public. The new SPAC would be funded partially by Softbank and third-party investors. The
client should be interested in the idea to buy up shares within Softbank and its new upcoming
SPAC.

 Recent market or industry trends: What are some of the recent trends that are
prevalent in the asset class you have chosen that you should highlight to your client?

SPAC recently is becoming a favorite amongst high profile investors, as the industry has a
very huge growth potential, Market data, has shown that, in 2020 alone the industry has
capped around 53 billion among 138 SPAC IPO’s while in 2019, the industry capped at 13.6
billion, amongst 59 deals, and in terms of growth and size of SPAC IPO’s the average in
2020 has been around 388 million. SPAC being a alternative investment for many high
profile investors, it surely promises a big breakthrough that Softbank has planned in the
coming weeks. Also, SOFTBANK has signed a deal to sell ARM to Nvidia Corp, a deal
worth 40 billion.

 Valuation analysis: Why should the client enter into your trading recommendation
and what are some of the valuation aspects or trends which make your idea
compelling?

Our recommendation is that, to load on SOFTBANK shares, at a price of JPY 7045, and
also to keep a eye for the IPO od its new SPAC, and try to buy shares, at IPO, or also at
Pre IPO if the opportunity arises Citi would notify of this to you first, the reason as to
why the investment is compelling, is due to its limited investment circle, as not many
investors have knowledge of these type of alternative investment, and it is a portion of
investment that provide a security at the end also.

 Potential risks for the client: What are the some of the potential risks that you should
highlight to the client for their consideration? 

The risks involved that these investments could backfire at times, where the investment could
turn sour, in the worst-case scenarios, the SPAC could fail, based on its acquisitions.

Initial Earnings Report could have a drastic, impact on its share price of the SPAC in the
start.

 Any other relevant points you believe demonstrate the strengths of your trading idea
or are helpful to your client to understand and move forward on this actionable idea.

SPAC investments are a secured investment from the start, as the underlying principle is that
the funds gathered by SPAC is kept a account which is interest bearing, and the parent
company is given 2 years to complete an acquisition, however, if no acquisition is done, the
funds are returned to investors, with interest. The new SPAC would focus on later stage
growth companies, that are willing to go public in the next 9-12 months, and with Softbanks
investment track record, we could trust on the firm planning something that is out of the
ordinary, and with the lessons learnt from its WeWork investments, we could conclude that
Softbank would not make the same mistake again, and the investment would pay off as a
sustainable investment.