Japanese firm SoftBank has officially filed for an Arm IPO in New York. The parent company of the British chip designer opted not to list it on the London Stock Exchange, to the disappointment of the Westminster government.
SoftBank made the application to the U.S. Securities and Exchange Commission (SEC) on Saturday. According to BBC sources, the investment firm is pursuing proceeds worth $8 billion to $10 billion.
SoftBank has been looking for an interested party in Arm for some time. A year ago, regulators in America and Europe proved to be a roadblock for a proposed acquisition by GPU giant Nvidia, because it would lead to less consumer choice and innovation.
The British government had previously tried to lobby for Arm’s entry on the London Stock Exchange, but SoftBank has opted for a New York IPO. The Nasdaq listing should lead to a higher valuation and appears to be a more attractive prospect for tech companies generally.
Still, the IPO on the New York Stock Exchange is not without its challenges. Global economic uncertainty following Russia’s invasion of Ukraine has made investors hesitant to fork over large amounts of money. In addition, the tech industry is currently on thin ice: Intel announced late last week that it had its worst quarter ever.
The IPO is expected to occur later this year, although SoftBank states that this is subject to market conditions. In other words, the investment firm may wait for the tech sector to stabilize before making the shares available.