Softbank Eyes $60 Billion Valuation For British Chip Designer Arm Ltd's IPO: Report

The Softbank Group Corp is seeking a valuation of around $60 billion for Arm Ltd when the British chip designing company goes public.

The preparations for Arm’s initial public offering (IPO) come merely a month after its speculated sale to Nvidia Corp for $40 billion collapsed last month, according to a report by Bloomberg.

Goldman Sachs, Mizuho Financial Group and JP Morgan are likely to lead a loan transaction for the company prior to the planned IPO.

Softbank had acquired Arm for around $32 billion back in 2016.

Sources in the know of developments told the aforementioned publication that the company’s valuation could possibly change due to market conditions.

Arm licenses the fundamental elements of semiconductors and it also sells chip designs to several bigwigs.

Softbank had announced the deal to sell Arm to Nvidia in September 2020. However, the U.S. Federal Trade Commission sued to block the transaction in December. This eventually led to Nvdia pulling out from the agreement in February.

As a result, Softbank is now reverting back to its original IPO plan for the company. Arm Ltd is thus slated to go public in the next fiscal itself.