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SoftBank's Arm Files for Massive U.S. IPO

SoftBank Group Corp's chip maker Arm Ltd has confidentially registered with regulators for a U.S. stock market listing, according to sources familiar with the matter. This sets the stage for the year's largest initial public offering (IPO).

Soft Bank Group logo
Soft Bank Group logo

Arm IPO Proceeds Despite Market Challenges

SoftBank announced its plan to list Arm on the U.S. stock market in March. The IPO registration demonstrates that the company is progressing with the colossal offering, despite unfavorable market conditions.

U.S. IPOs Suffer Amid Market Volatility

Excluding special purpose acquisition companies, U.S. IPOs have seen a 22% decline, amounting to $2.35 billion year-to-date. Stock market volatility and economic uncertainty have deterred many IPO hopefuls.

Arm Aims for $8-10 Billion Through Nasdaq Listing

Arm intends to list its shares on Nasdaq later this year to raise between $8 billion and $10 billion. However, the sources emphasized that the exact timing and size of the IPO depend on market conditions.

Signs of IPO Market Recovery Emerge

There are indications that the IPO market is beginning to recover. Johnson & Johnson is set to list its consumer health business, Kenvue Inc, in New York next week to raise around $3.5 billion.

SoftBank Targets Arm Listing After Nvidia Deal Collapse

SoftBank has been seeking a listing for Arm since its $40 billion deal to sell the chip designer to Nvidia Corp fell through last year due to objections from U.S. and European antitrust regulators.

Arm's Focus on Data Centers and P.C.s Boosts Sales

Arm's business has outperformed the broader chip industry thanks to its emphasis on data center servers and personal computers that generate higher royalty payments. The company reported a 28% sales increase in its most recent quarter.

Arm IPO Expected to Benefit SoftBank's, Vision Fund

Arm's IPO is predicted to enhance SoftBank's fortunes, which is striving to recover its giant Vision Fund. The fund has suffered losses due to the diminishing valuations of many of its technology startup holdings.

Arm Chooses US Listing Over U.K.

Earlier this year, Arm rejected the British government's campaign to list its shares in London and opted for a flotation on a U.S. exchange instead.

Major Banks Lead Arm's IPO Preparations

Goldman Sachs Group Inc, JPMorgan Chase & Co, Barclays, and Mizuho Financial Group are spearheading Arm's IPO preparations.