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SoftBank plans to keep majority stake after Arm IPO


Masayoshi Speaks during the joint announcement made by Toyota Motor in Tokyo to establish a new company to provide mobility services.

Alessandro Di Ciommo | NurPhoto | Getty Images

Japanese tech conglomerate SoftBankIt intends to retain a majority of U.K. Chip Designer Arm’s shares when the company is listed in an initial public offering.

Masayoshi son, SoftBank CEO, announced the good news on Thursday. a reportBloomberg last month cited sources familiar with this matter.

Son stated that SoftBank intends to list Arm as quickly as possible but that they are willing to hold off if the stock market continues to fluctuate. Son stated in February that Arm would likely be listed by the end of the fiscal year, which will conclude March 31, 2023.

He declined to discuss the valuation of Arm. Arm’s energy-efficient chip architectures are found in many smartphones around the globe.

SoftBank had planned to sell Arm to the U.S. chip company giant NvidiaFor $40 billion. However, the deal was scrapped in March after fierce scrutiny by competition regulators in America, Europe, China, and Britain.

Son stated previously that SoftBank plans to list Arm at the Nasdaq Stock Exchange in New York.

Arm is not to be listed at the London Stock Exchange, according to the U.K. government.

Boris Johnson, Prime Minister of the United Kingdom sent SoftBank a request to list Arm back in their home country. a report from The Financial TimesThis was earlier in the month. SoftBank refused to respond when SoftBank was asked about the letter.

Analysts are unsure whether SoftBank will be able make the same amount through an IPO or a sale.

SoftBank reported a record lossOn Thursday, the Vision Fund Investment Unit suffered as tech stocks were hammered in rising interest rates after Beijing’s regulatory crackdown.

For its fiscal year ending March, the Vision Fund suffered a loss of 3.5 trillion Japanese yen ($27.4 million). 31, which is the worst loss for the investment fund since it was established in 2017.