SoftBank’s arm aims to raise at least $8 billion in a U.S. IPO, sources say

NEW YORK, March 5 (Reuters) – Arm Ltd, the British chip designer owned by Japan’s SoftBank Group Corp ( 9984.T ), is likely to aim to raise at least $8 billion from what is expected to be a grand launch of the U.S. stock market. this year, people familiar with the matter said Sunday.

Arm is expected to submit confidential paperwork for its initial public offering in late April, said the sources, who spoke on condition of anonymity because the discussions are confidential. The IPO is expected to happen later this year and the exact timing will be determined by market conditions, the sources added.

SoftBank has selected four investment banks to lead what is expected to be the most high-profile IPO in recent years. Goldman Sachs Group Inc ( GS.N ), JPMorgan Chase & Co ( JPM.N ), Barclays ( BARC.L ) and Mizuho Financial Group ( 8411.T ) are expected to be the lead underwriters for the deal, the sources said. adds that no bank has been chosen for the highly coveted “lead left” position yet.

The Australian Financial Review reported on the leading banks earlier on Sunday.

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Preparations for the IPO are expected to kick-start in the US in the coming days, the sources said. The valuation range has not yet been finalized, but Cambridge, England-based Arm hopes to be valued at more than $50 billion during its share sale, the sources said.

An ARM and SoftBank Group branded tablet is shown at a press conference in London, Britain July 18, 2016. REUTERS/Neil Hall/File Photo

Barclays, JPMorgan and SoftBank did not immediately respond to requests for comment. Arm, Goldman Sachs and Mizuho declined to comment.

A successful IPO for Arm this year would boost the IPO market, which has been largely frozen since Russia’s invasion of Ukraine in February 2022 sparked market volatility and a big selloff in tech stocks.

The IPO market briefly flickered back to life last month when a number of companies, including solar technology firm Nextracker Inc ( NXT.O ) and Chinese sensor maker Hesai Group ( HSAI.O ) listed their shares on U.S. exchanges, but investors are still on guard. bets on new shares.

IPO advisors do not expect a full recovery in the capital markets until the latter half of this year. Read more

Arm said last week it would pursue a US-only listing this year, dashing UK government hopes that the tech giant would return to the London stock market. Read more

SoftBank has been pursuing an IPO for Arm since its deal to sell the chip designer to Nvidia Corp ( NVDA.O ) for $40 billion collapsed last year over objections from U.S. and European antitrust regulators.

Reporting by Echo Wang and Anirban Sen in New York; Editing by Will Dunham

Our standards: Thomson Reuters Trust Principles.

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