What happened: SoftBank Group's chip design firm, Arm Ltd, has filed for a stock market listing, setting up for what could be this year's biggest initial public offering in the U.S. Details: Despite unfavorable market conditions, the Japanese conglomerate is moving forward with its plan to list Arm on the Nasdaq, suggesting a thawing IPO market and a potential ice breaker for future firms to go public. SoftBank acquired Arm, whose technology powers almost all smartphones, for over $32B in 2016. It's been targeting a listing for Arm since last year, when its $40B deal to sell the chip maker to Nvidia collapsed. Why it matters: Reuters reports that the U.K.-based chip maker seeks to raise $8B to $10B. SoftBank is currently working to revitalize its giant Vision Fund, which has suffered significant losses due to the plummeting valuations of its holdings in tech startups. Arm's upcoming IPO could provide a boost to SoftBank's financial prospects and more. What the numbers say: According to Dealogic, many potential IPO candidates have been dissuaded by economic uncertainty, leading to a 22% decline in U.S. IPOs year-to-date, excluding special purpose acquisition company (SPAC) listings. As a result, the total raised from IPOs this year has been only $2.35B. In the tech sector, IPOs fell from 631 in 2021 to 328 in 2022, while proceeds decreased from $149.1B to $37.4B, according to EY. Still: Sources say the size, price range, and timing of Arm's IPO remain subject to market conditions.
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