SoftBank’s Arm targets $60 billion-plus value for September IPO

London, UK -SoftBank Group Corp. is targeting a valuation of more than $60 billion for its Arm Ltd. chip unit in an initial public offering (IPO) that could take place as soon as September, according to people familiar with the matter.

The Japanese conglomerate is seeking to sell a stake of about 20% in Arm, which could raise about $12 billion, the people said. The IPO could be delayed or scaled back if market conditions deteriorate, they added.

SoftBank is working with banks including Goldman Sachs Group Inc. and Morgan Stanley on the IPO, the people said. The company has not yet filed a prospectus with regulators, and the terms of the offering could still change.

Arm is a leading supplier of semiconductor intellectual property (IP) used in smartphones, servers, and other devices. The company was founded in 1990 and is based in Cambridge, UK.

SoftBank acquired Arm in 2016 for $32 billion. The company has been considering an IPO for Arm for several years, but it has been delayed by the COVID-19 pandemic and other factors.

The IPO of Arm is one of the biggest tech listings in the pipeline. It is also one of the most closely watched, as it will be a test of investor appetite for chip stocks.

The chip industry has been booming in recent years, driven by the growth of smartphones, cloud computing, and artificial intelligence. However, the industry is also facing some challenges, including rising costs and shortages of components.

It remains to be seen how investors will react to the IPO of Arm. However, the company has a strong track record and a leading position in the chip market. If the IPO is successful, it could be a major boost for SoftBank and Arm.

Key takeaways from the story:

  • SoftBank is targeting a valuation of more than $60 billion for its Arm Ltd. chip unit in an initial public offering (IPO) that could take place as soon as September.
  • The IPO could raise about $12 billion.
  • Arm is a leading supplier of semiconductor intellectual property (IP) used in smartphones, servers, and other devices.
  • SoftBank acquired Arm in 2016 for $32 billion.
  • The IPO of Arm is one of the biggest tech listings in the pipeline.
  • It is also one of the most closely watched, as it will be a test of investor appetite for chip stocks.