SoftBank’s Arm aims to raise at least $8 billion in US 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 look to raise at least $8 billion from what is expected to be a blockbuster in the US stock market be this year, people familiar with the case said Sunday.

Arm is expected to file confidential paperwork ahead of its IPO at the end of April, the sources said, speaking on the condition of anonymity because the discussions are confidential. The listing is expected to take place later this year and the exact timing will be determined by market conditions, the sources said.

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 main underwriters for the deal, the sources said: adding that no bank has yet been selected for the coveted “lead left” position.

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

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

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

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

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

IPO advisers do not expect a full recovery in the capital markets until the second half of this year. read more

Arm said last week it would only go to the US this year, dashing the UK government’s hopes that the tech giant would return to the London stock market. read more

SoftBank has been pursuing a listing of Arm since the deal to sell the chip designer for $40 billion to Nvidia Corp (NVDA.O) collapsed last year over objections from US and European antitrust regulators.

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

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