SoftBank expects to keep the majority stake after Arm’s IPO

Masayoshi Son speaks during a joint announcement with Toyota Motor to embark on a new venture to develop mobility services in Tokyo in October 2018.

Alessandro Di Ciommo | SoloFoto | Getty Images

Japanese technology conglomerate Soft bank intends to retain a majority stake in British chip designer Arm when it shares the company through an initial public offering.

Masayoshi Son, CEO of SoftBank, confirmed the news the following Thursday a report from Bloomberg last month which cited people familiar with the matter.

Son said SoftBank plans to list Arm as soon as possible, but added that the company is willing to wait if equity markets continue to be volatile. In February, Son said Arm would likely be listed by the fiscal year ending March 31, 2023.

The billionaire declined to comment on the valuation he is looking for for Arm, whose energy-efficient chip architectures are used in most of the world’s smartphones and many other products.

SoftBank was supposed to sell Arm to the American chip giant Nvidia for $ 40 billion, but the deal was canceled in March due to intense scrutiny by competition regulators in the US, Europe, China and the UK

In terms of where SoftBank will list Arm, Son previously said he plans to take the company publicly in New York, which is home to the technology-focused Nasdaq stock exchange.

The UK government, however, wants Arms to be listed on the London Stock Exchange.

Prime Minister Boris Johnson sent a letter to SoftBank urging the company to consider listing Arms in its home country, according to a Financial Times report earlier this month. SoftBank declined to comment when asked about the letter.

Analysts wondered if SoftBank would be able to make a lot of money through an IPO rather than a sale.

Soft bank reported a record loss Thursday in its Vision Fund investment unit as tech stocks are hit by rising interest rates and after Beijing’s regulatory crackdown.

The Vision Fund recorded a loss of 3.5 trillion yen ($ 27.4 billion) for its fiscal year ending March 31, the largest loss since the fund’s inception in 2017.