March 23, 2023

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Sources say SoftBank’s Arm aims to raise at least $8 billion in a US IPO

NEW YORK (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 in what is expected to be a huge launch in the US stock market. This year, people familiar with the matter said on Sunday.

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

SoftBank has selected four investment banks to lead what is expected to be the most floatable stock market in recent years. The sources said that Goldman Sachs Group Inc. (GS.N), JPMorgan Chase & Co. (JPM.N), Barclays (BARCL) and Mizuho Financial Group (8411.T) are expected to be the main guarantors of the deal. Adding that no bank has been selected for the much sought after “left lead” position yet.

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

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The sources said that preparations for the IPO in the US are expected to begin in the coming days. The sources said the scope of the valuation has not yet been finalized, but Cambridge, England-based Arm hopes to be valued at more than $50 billion through the sale of its stake.

A board branded by ARM and SoftBank Group 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.

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Arm’s successful listing this year would provide a boost to the IPO market, which has been largely frozen since Russia’s invasion of Ukraine in February 2022 caused market volatility and a massive sell-off of technology stocks.

The IPO market briefly revived last month as a number of companies including solar technology company Nextracker Inc (NXT.O) and Chinese sensor maker Hesai Group (HSAI.O) listed on US exchanges, but investors remain wary. betting on new stocks.

IPO advisors don’t expect an overall recovery in the capital markets until the second half of this year. Read more

Arm said last week that it would only pursue a US listing this year, dashing the British government’s hopes of the tech giant returning to the London stock market. Read more

SoftBank has been seeking to list Arm since the $40 billion sale of the chip designer to Nvidia Corp (NVDA.O) last year collapsed over objections from US and European antitrust agencies.

(Reporting by Eko Wang and Anirban Sen in New York); Editing by Will Dunham

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