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

Hesai

05/03/2023 21:14

By Echo Wang and Anirban Sen
       NEW YORK, March 5 (Reuters) - Arm Ltd, the British chip
designer owned by Japan's SoftBank Group Corp  9984.T , 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. 
    Arm is expected to confidentially submit paperwork for its
initial public offering in late April, the sources said,
speaking on condition of anonymity because the discussions are
confidential. The listing is expected to happen later this year
and the exact timing will be determined by market conditions,
the sources added. 
    SoftBank has picked four investment banks to lead what is
expected to be the most high-profile stock market flotation 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 lead underwriters for the deal,
the sources said, adding that no bank has been picked for the
much-coveted "lead left" position yet. 
    The Australian Financial Review reported on the lead banks
earlier on Sunday. 
    The preparations for the IPO are expected to be kick-started
in the U.S. in the coming days, the sources said. The valuation
range has not yet been finalized but Cambridge, England-based
Arm is hoping to be valued at more than $50 billion during its
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 for Arm this year would provide a boost
to the IPO market, which has been largely frozen since Russia's
invasion of Ukraine in February 2022 triggered market volatility
and a huge sell-off in tech stocks.
    The IPO market briefly flickered back to life last month as
a number of companies including solar tech firm Nextracker Inc
 NXT.O  and Chinese sensor maker Hesai Group  HSAI.O  listed
their shares on U.S. stock exchanges, but investors still remain
wary of betting on new stocks. 
    IPO advisors are not expecting a full-blown recovery in
capital markets until the latter half of this year.  urn:newsml:reuters.com:*:nL4N34V0G7
    Arm said last week it would pursue a U.S.-only listing this
year, dashing the British government's hopes that the tech giant
would return to the London stock market.  urn:newsml:reuters.com:*:nL4N35B1N0
    SoftBank has been pursuing a listing for Arm since its deal
to sell the chip designer to Nvidia Corp  NVDA.O  for $40
billion collapsed last year because of objections from U.S. and
European antitrust regulators.

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U.S. IPO pick-up offers hope of market re-open     urn:newsml:reuters.com:*:nL4N34V0G7
SoftBank's Arm rebuffs London by choosing U.S. listing   
 urn:newsml:reuters.com:*:nL4N35B1N0
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 (Reporting by Echo Wang and Anirban Sen in New York; Editing by
Will Dunham)
 ((E.Wang@thomsonreuters.com; +1 917 287 3971))