SoftBank Group Corp’s Arm Ltd, the chip maker, has confidentially filed for a U.S. stock market listing, which could be this year’s largest initial public offering, according to a statement released on Saturday. The move comes despite adverse market conditions and stock market volatility, which have deterred many IPO hopefuls, as U.S. IPOs (excluding listings for special purpose acquisition companies) are down about 22% to a total of just $2.35 billion year-to-date, according to Dealogic.
Sources familiar with the matter have stated that Arm plans to sell its shares on Nasdaq later this year, aiming to raise between $8 billion and $10 billion. However, the size and price range of the offering have not yet been determined. The exact timing and size of the IPO remain subject to market conditions and confidentiality agreements.
SoftBank has been pursuing a listing for Arm since its deal to sell the chip designer to Nvidia Corp for $40 billion was blocked last year by U.S. and European antitrust regulators. Since then, Arm’s business has outperformed the broader chip industry due to its focus on data center servers and personal computers that generate higher royalty payments. The company recently announced that its sales had increased by 28% in its most recent quarter.
Arm’s IPO is expected to boost the fortunes of SoftBank, which is striving to turn around its giant Vision Fund, which has suffered losses due to the declining valuations of many of its holdings in technology startups.
Earlier this year, Arm rejected a campaign from the British government to list its shares in London and instead opted for a flotation on a U.S. exchange. Arm’s IPO preparations are being led by Goldman Sachs Group Inc, JPMorgan Chase & Co, Barclays and Mizuho Financial Group.
