© Reuters. FILE PHOTO: An ARM and SoftBank Group branded dashboard is pictured at a news conference in London, Britain, July 18, 2016. REUTERS/Neil Hall/File Photo
By Echo Wang and Anirban Sen
NEW YORK (Reuters) – Arm Ltd, the British chip designer owned by Japan’s SoftBank Group Corp, is likely to aim to raise at least $8 billion in what is expected to be a big launch on the U.S. stock market this year, according to people familiar with the matter. said Sunday.
Arm is expected to confidentially submit paperwork for its initial public offering at the end of April, said the sources, who spoke on condition of anonymity because the discussions are confidential. The listing is expected to occur later this year and the exact timing will be determined by market conditions, the sources added.
SoftBank has chosen four investment banks to lead what is expected to be the highest-profile IPO in recent years. Goldman Sachs Group Inc (NYSE:), JPMorgan Chase & Co (NYSE:), barclays (LON:) and Mizuho Financial Group are expected to be the primary underwriters of the deal, the sources said, adding that no bank has yet been chosen for the coveted “left-leader” position.
The Australian Financial Review reported on the major banks on Sunday.
Preparations for the IPO are expected to start in the US in the coming days, the sources said. The valuation range has not yet been finalized, but Cambridge, England-based Arm expects to be valued at more than $50 billion during the sale of its shares, 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 Arm listing this year would provide a boost to the IPO market, which has been largely frozen since the Russian invasion of Ukraine in February 2022 triggered market volatility and a large sell-off in tech stocks.
The IPO market briefly revived last month when several companies, including solar technology firm Nextracker Inc and Chinese sensor maker Hesai Group, listed their shares on US stock exchanges, but investors they are still wary of betting on new shares.
IPO advisers do not expect a full recovery in the capital markets until the second half of this year.
Arm said last week that it would seek to list only in the US this year, dashing the British government’s hopes that the tech giant would return to the London stock market.
SoftBank has been seeking a listing from Arm since its deal to sell the chip designer to Nvidia (NASDAQ:) Corp for $40 billion collapsed last year over objections from US and European antitrust regulators.
