SoftBank Group shares rose Friday morning in Tokyo after chip designer Arm surged in its Nasdaq debut overnight, raising hopes for a recovery in the IPO market.
Shares of SoftBank
which took Arm private in 2016, jumped as much as 5.1% early in the session and were recently up 2.4% at 6,737 yen.
The British chip designer’s stock
closed up 25% from its initial public offering price of $63.59 on Thursday in New York.
Arm’s offering, the biggest in the U.S. since Rivian Automotive made its debut in November 2021, raised around $5 billion for SoftBank.
SoftBank’s tech funds have stakes in hundreds of private companies. The company recently said it wants to renew its push for large-scale investments in artificial intelligence.
SoftBank posted a net loss of Y970.14 billion ($6.58 billion) for the fiscal year ended March as the valuation of tech companies was hit by concerns about policy tightening by global central banks. The company posted net loss of Y477.62 billion for its first quarter ended June.
SoftBank sold 10% of its Arm shares in the IPO. Arm is now valued at nearly $69 billion on a fully diluted basis, well above the roughly $32 billion SoftBank acquired it for in 2016.