- SoftBank Group Corp (OTC:SFTBY) (OTC:SFTBF) looks to retain a controlling stake in Arm Ltd after the planned IPO selling a smaller portion than initially expected, Bloomberg reports.
- SoftBank sought a valuation of at least $60 billion for Arm, beating the deal valuation with Nvidia Corp (NASDAQ:NVDA).
- SoftBank looked to sell a smaller portion of Arm given the current slump in chip stocks, providing the opportunity to get a higher valuation for the remainder later.
- SoftBank opted for an initial public offering of Arm (which it acquired in 2016 for $32 billion) after Arm's deal with Nvidia fell flat.
- SoftBank's raising of an $8 billion term loan secured with shares of Arm also has provided it with enough financial freedom to hold onto a more significant portion of the company and wait for better market conditions.
- An IPO is likely in the first quarter of 2023.
- Arm looked to transfer shares in its China joint venture to a SoftBank special purpose vehicle to speed up its U.S. IPO.
