Daily Management Review

SoftBank's Arm Targets Raising At Least $8 Billion In IPO In The US: Source


SoftBank's Arm Targets Raising At Least $8 Billion In IPO In The US: Source
People with knowledge of the situation said on Sunday that Arm Ltd, the British chip designer owned by Japan's SoftBank Group Corp, is likely to aim to raise at least $8 billion from what is anticipated to be a massive U.S. stock market debut this year.
Speaking under the condition of anonymity because the conversations are private, the sources said that Arm anticipates submitting confidential paperwork for its initial public offering in late April. According to the sources, the listing is anticipated to take place later this year, with the precise date depending on the state of the market.
The most high-profile stock market flotation in recent years is expected to be led by four investment banks that SoftBank has chosen.
According to the sources, Goldman Sachs Group Inc, JPMorgan Chase & Co, Barclays, and Mizuho Financial Group will serve as the deal's lead underwriters; no bank has yet been selected for the coveted "lead left" position.
On Sunday morning, The Australian Financial Review published a report on the top banks.
According to the sources, the U.S. IPO planning will likely get under way in the ensuing days. The sources said that although the valuation range has not been determined, Cambridge, England-based Arm is hoping to be valued at more than $50 billion during its share sale.
Requests for comment from Barclays, JPMorgan, and SoftBank were not immediately fulfilled. Goldman Sachs, Mizuho, and Arm all declined to comment.
The IPO market, which has been largely stagnant since the Russian invasion of Ukraine in February 2022 caused market volatility and a significant sell-off in tech stocks, would receive a boost from Arm's successful listing this year.
The IPO market briefly came back to life last month with the listing of shares by several companies, including solar technology company Nextracker Inc. and Chinese sensor manufacturer Hesai Group, on American stock exchanges, but investors are still leery of placing bets on new stocks.
Capital markets are not expected to fully recover until the second half of this year, according to IPO advisors.
The British government's aspirations that the technology giant would come back to the London stock market were dashed when Arm announced last week that it would continue pursuing a US-only listing this year.
Since its $40 billion deal to sell Arm to Nvidia Corp. fell through last year due to concerns from American and European antitrust regulators, SoftBank has been working to list Arm.