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U.K. chip designer Arm Ltd, owned by Japan’s SoftBank Group Corp SFTBF SFTBY, reportedly aims to raise at least $8 billion in its American stock market debut after having shunned calls for a dual listing at home.
What Happened: The British company will confidentially submit paperwork for its U.S. initial public offering in April, and the listing will happen late this year subject to market conditions, Reuters reported, citing people familiar with the matter.
Goldman Sachs Group Inc, JPMorgan Chase & Co, Barclays and Mizuho Financial Group are expected to be lead underwriters for the deal, although none have been finalized, as per the report.
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Arm expects to be valued north of $50 billion during its share sale, the sources were quoted as saying.
Why It Matters: SoftBank sought a $60 billion valuation for Arm in 2022, according to earlier media reports, after a proposed takeover deal from Nvidia tumbled due to fierce opposition from regulators and customers.
A successful Arm IPO is also viewed as one of the keys to reigniting investment activity at the Japanese conglomerate, whose Vision Funds have taken a beating due to weakness in the tech markets.
Price Action: SFTBF shares closed over 1% higher at $41.30 on Friday and spiked nearly 3.7% in after-hours trading, according to data from Benzinga Pro.
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Image and article originally from www.benzinga.com. Read the original article here.