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

Echo Wang and Anirban Sin

NEW YORK (Reuters) – 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 expected to be a blockbuster U.S. stock market launch this year, people familiar with the matter said on Sunday.

According to sources, Arm is likely to submit confidential paperwork in preparation for the initial public offering. Sources said that the listing should occur later in the year, with market conditions determining the precise timing.

SoftBank selected four investment banks as the leaders of what will be one of the most prominent stock market flotations in recent decades. Sources said that Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays, and Mizuho Financial Group will be leading underwriters of the deal. “lead left” Position yet

Australian Financial Review had earlier reported on Sunday on lead banks.

Sources said that the preparations to go public in the United States are likely to start in the coming days. Sources said that although the valuation range is not finalized, Arm, based in Cambridge, England, hopes to sell shares worth more than $50 Billion.

SoftBank, JPMorgan and Barclays didn’t immediately reply to inquiries for comment. Arm, Goldman Sachs, and Mizuho did not respond to requests for comment.

The success of Arm’s listing this year will boost the IPO market. This market has been largely frozen after Russia’s invasion in Ukraine in 2022. There have also been huge selling in tech stocks and volatility.

The IPO market was briefly revived last month by a few companies, including Nextracker Inc (solar tech company) and Hesai Group (chinese sensor manufacturer), listing their shares on U.S. Stock Exchanges. However investors remain cautious about betting on new stocks.

IPO advisors don’t expect a complete recovery of capital markets before the second half of 2012.

Arm last week stated that it plans to pursue a U.S. only listing for this year. It scuttled the British government’s hopes that the tech titan would return the London stock exchange.

SoftBank is pursuing an Arm listing since the deal to sell Nvidia Corp’s chip design to them for $40 Billion fell through last year due to objections by U.S. antitrust regulators.

Echo Wang in New York and Anirban San in New York. Editing done by Will Dunham