Here's How Arm Looks To Speed Up Its US IPO

SoftBank Group Corp SFTBY SFTBF-owned Arm Ltd, looks to transfer shares in its China joint venture to a SoftBank special purpose vehicle to speed up its U.S. IPO, the Financial Times reports.
SoftBank will hold 28% of Arm China after the transfer, Bloomberg reports. Arm will hold less than 20% of Arm China and treat it as an uncontrolled affiliate.
Arm will continue receiving licensing revenues from Arm China but will not need to audit the company's financials.
The move will help SoftBank founder Masayoshi Son push ahead with an IPO of the chip designer despite a long-running stand-off involving Allen Wu, the head of Arm China, who currently controls the joint venture.
The British chip designer struggled to regain control of its China business for almost two years.
Arm's failure to audit the unit's financials, which contributed about one-fifth of revenue in 2021, was the main obstacle to its IPO following the collapse of the Nvidia Corp NVDA deal.
SoftBank believes that it does not require approval from Wu and the Shenzhen government for the share transfer.
The IPO will play a crucial role in freeing up capital for SoftBank after the global selloff of technology companies eroded its balance sheet.