Softbank CEO Masayoshi Son Set To Finalize Arm Semiconductor Listing Deal for IPO by This Week

  • Softbank Group Corp SFTBF SFTBY chief Masayoshi Son prepares to reach a deal with Nasdaq to list chip designer Arm Ltd by this week.
  • Softbank and the New York Exchange reached a tentative agreement over Arm’s proposed listing on Monday, the Financial Times reports citing familiar sources.
  • The move represents the first formal step in the IPO process likely to end speculation over Son’s plans for the Cambridge-based company after a deal to sell it to rival Nvidia Corp NVDA collapsed in early 2022.
  • Son recently stepped back from front-line management of Softbank’s other investment activities to concentrate on the turnaround and float of Arm.
  • Investors said that given the difficulty of directly comparing Arm with any other company, a realistic valuation could range between $30 billion - $70 billion.
  • Reportedly Softbank did not look to dual-list Arm on another exchange.
  • The success of the IPO will be critical for Softbank to engineer a turnaround as analysts expect the group to log two straight years of losses when it reports its results next month.
  • Ahead of the IPO, Son has focused on revamping Arm’s business model to drive up its profits. 
  • Recent reports suggested Arm is seeking to raise prices for its chip.
  • Price Action: SFTBY shares closed higher by 1.03% at $19.40 on Tuesday.
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