Exclusive: SoftBank’s Arm files massive US IPO. On Saturday, sources indicated SoftBank Group Corp.’s (9984.T) chip manufacturer Arm Ltd. filed confidentially for a U.S. stock market listing, laying the groundwork for this year’s largest IPO.
SoftBank’s IPO registration reveals it is proceeding with the blockbuster sale despite market circumstances.
According to Dealogic, U.S. IPOs, excluding special purpose acquisition businesses, are down 22% year-to-date to $2.35 billion. Stock market volatility and economic uncertainties deterred many IPO aspirants.
Sources indicated Arm will sell its Nasdaq shares later this year to generate $8 billion to $10 billion.
The sources requested anonymity since the IPO’s timing and amount are market-dependent.
IPOs are warming up. Next week, Johnson & Johnson Inc (JNJ.N) will list its consumer health firm Kenvue Inc (KVUE.N) in New York to generate $3.5 billion.
Since its $40 billion sale of Arm to Nvidia Corp (NVDA.O) fell through last year due to U.S. and European antitrust concerns, SoftBank has sought a listing for Arm.
Since then, Arm’s concentration on data center servers and personal PCs, which produce greater royalty payments, has helped it outperform the semiconductor industry. In its last quarter, revenues rose 28%.
SoftBank’s Vision Fund, which has lost money owing to the falling prices of several of its tech startup assets, is likely to benefit from Arm’s IPO.
Arm rejected a British government request to list its shares in London earlier this year and floated on a U.S. exchange instead.
Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays (BARC.L), and Mizuho Financial Group (8411.T) are preparing Arm’s IPO.
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