According To Sources, SoftBank's Arm Plans To Raise $8 Billion In Its U.S. IPO

People with knowledge of the situation said on Sunday that Arm Ltd, the British chip manufacturer owned by Japan's SoftBank Group Corp, is likely to attempt to raise at least $8 billion from what is anticipated to be a massive U.S. stock market debut this year.

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Speaking under the condition of anonymity because the conversations are private, the people indicated that Arm anticipates submitting secret paperwork for its initial public offering in late April. According to the sources, the listing is anticipated to take place later this year, with the precise date depending on the state of the market.

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The most high-profile stock market IPO in recent years is anticipated to be led by four investment banks that SoftBank has chosen. According to the sources, Goldman Sachs Group Inc, JPMorgan Chase & Co, Barclays, and Mizuho Financial Group will serve as the deal's lead underwriters; no bank has yet been selected for the coveted "lead left" role.

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On Sunday morning, The Australian Financial Review published a report on the top banks.

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According to the sources, the U.S. IPO planning would likely get under way in the ensuing days. The sources stated that although the valuation range has not been determined, Cambridge, England-based Arm is expecting to be priced at more than $50 billion throughout its share sale.

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Requests for comment from Barclays, JPMorgan, and SoftBank were not immediately fulfilled. Goldman Sachs, Mizuho, and Arm all declined to comment.

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The IPO market, which has been essentially stagnant since the Russian invasion of Ukraine in February 2022 caused market turmoil and a significant sell-off in tech equities, would receive a boost from Arm's successful listing this year.

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The IPO market momentarily came back to life last month with the listing of shares by several businesses, including solar technology company Nextracker Inc. and Chinese sensor manufacturer Hesai Group, on American stock markets, but investors are still leery of placing bets on new equities.

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Capital markets are not expected to fully recover until the second part of this year, according to IPO consultants.

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The British government had hoped Arm would return to the London Stock Exchange this year, but Arm announced last week it would pursue a U.S.-only listing.

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After U.S. and European antitrust officials objected to SoftBank's previously announced $40 billion deal to sell Arm to Nvidia, SoftBank is seeking to list Arm.

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