Sources state that SoftBank's Arm strives to increase almost $8 billion in U.S. IPO

March 7, 2023: Arm, the British chip designer owned by Japan’s SoftBank, can aim to increase at least $8 billion from what is wanted to be a blockbuster U.S. stock launch of the market, people who are similar with the matter said on Sunday.

The sources said Arm is expected to submit paperwork confidentially for its initial public offering in late April, speaking anonymously because the talks are confidential. The listing is anticipated to happen later this year, and market conditions will determine the exact timing, the sources added.

SoftBank is picking four investment banks to lead what is anticipated to be the high-profile stock market flotation in the latest years. The sources stated that Goldman Sachs, JPMorgan Chase & Co, Barclays, and Mizuho Financial Group are anticipated to be the lead underwriters for the agreement, which added that no bank had been picked for the much-coveted “lead left” work yet.

The Australian Financial Review stated on the lead banks earlier on Sunday.

The sources said the preparations for the IPO are expected to kick-start in the U.S. in the coming days. The valuation limitations have yet to be finalized, but the sources communicated that Cambridge, England-based Arm hopes to be valued at over $50 billion during its share sale.

This year, a successful list for Arm would increase the IPO market, frozen mainly since Russia’s invasion of Ukraine in 2022 triggered market volatility and a massive sell-off in tech stocks.

The IPO market flashed back to life the previous month as several companies, including solar tech company Nextracker and Chinese sensor maker Hesai Group, listed their claims on U.S. stock exchanges. However, investors still need to be convinced to bet on new stocks.

IPO advisors hope for a full-blown recovery in capital markets in the latter half of this year.

Arm said it would pursue a U.S.-only listing this year last week, dashing the British nation’s hopes that the tech company would return to the London stock market.

SoftBank has been getting a listing for Arm from its deal to sell the chip designer to Nvidia for $40 billion collapsed in the previous year because of objections from U.S. and European antitrust regulators.