SoftBank Plans Biggest US IPO Since Arm Went Public: Taps Top Wall Street Banks For A Potential $2 Billion Offering

Japan’s Softbank Group Corp. SFTBY is reportedly in talks with major U.S. investment banks regarding an initial public offering for its payments platform, PayPay.

Softbank is testing its 52-week high. See the chart here.

A $2 Billion Offering

The banks leading the preparations include Goldman Sachs Group Inc. GS, JPMorgan Chase & Co. JPM, Mizuho Financial Group Inc. MFG and Morgan Stanley MS, according to a Reuters report.

The company is expected to raise more than $2 billion from the offering, which could conclude as early as the last quarter of this year, according to sources familiar with the matter.

PayPay is a dominant player in the Japanese payments landscape, having played a vital role in encouraging consumers to move away from their preference for cash and toward its mobile app.

PayPay’s ownership is currently split between Softbank, its Vision Fund investment arm and LY Corp. YAHOY — a company formed by the merger of Yahoo Japan Corporation and LINE Corporation, which is jointly owned by Softbank and South Korea’s Naver Corporation NHNCF.

Softbank did not immediately respond to Benzinga’s requests for a comment on this matter. This story will be updated as soon as we hear back.

Softbank’s Biggest Offering Since 2023

This would mark the Japanese conglomerate’s biggest offering since the IPO of Arm Holdings PLC ARM in 2023, which raised $5 billion, at a $54 billion valuation.

It was, however, significantly lower than Softbank’s initial expectations for a $70 billion valuation, owing to a decline in profits leading up to the offering.

Shares of the chip designer have since rallied over 128%, following its blockbuster IPO, which was at the time the largest since Rivian Automotive Inc.’s RIVN $12 billion offering in 2021.

Softbank’s shares were up 8.77% on Friday, closing at $47.15 per share, after the company highlighted significant gains across its artificial intelligence investments, primarily from OpenAI.

Photo Courtesy: Michael Vi on Shutterstock.com

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