SoftBank’s Arm unveils plans for biggest US IPO in nearly 2 years


SoftBank-owned chip designer Arm has started the final countdown to the biggest US initial public offering in almost two years, filing a preliminary prospectus for a Nasdaq listing that is set to take place early next month.

Arm is on track to be the most valuable company to complete a US IPO since at least November 2021, when electric-car maker Rivian listed with an initial market capitalisation of $70bn. A higher valuation would make it the most valuable new listing since ride-sharing group Uber floated in 2019 at a $75bn market cap.

Bankers and start-up backers hope a successful debut for Arm would help to reopen the IPO market after an 18-month drought, particularly for new tech listings.

SoftBank acquired UK-based Arm for $32bn in 2016. Last week an internal transaction between SoftBank Group and its Vision Fund — an investment vehicle that the Japanese conglomerate manages — valued Arm at $64bn. SoftBank bought back the 25 per cent stake in Arm that was previously owned by the Saudi-backed investment fund.

This is a developing story

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