TOKYO – Shares of SoftBank Group rose after the Japanese company’s semiconductor design unit, Arm, filed an application with regulators for an initial public offering (IPO). 

Arm said at the weekend that it had confidentially submitted a draft registration statement to the US Securities and Exchange Commission (SEC) for its debut.

The size and price range for the proposed offering have yet to be determined, the firm said in a statement, adding that the IPO is subject to market and other conditions and the completion of the SEC’s review process.

SoftBank shares rose as much as 2.45 per cent on Monday and had dropped about 10 per cent this year before that.

SoftBank founder Masayoshi Son has made Arm’s debut a strategic focus after his Vision Fund’s start-up investments led to substantial losses. He has said he wants the IPO to be the biggest ever in the semiconductor industry, and investment banks lining up to handle the deal have pitched a range of valuations from US$30 billion (S$40 billion) to US$70 billion.

The British government had tried to draw the listing of Arm back to its home country, and SoftBank had been considering such an option. 

SoftBank said in the May 1 announcement that it expects Arm to remain a consolidated subsidiary after completion of the IPO. It also said the IPO “will not have a material impact” on its consolidated performance or financial position. 

Mr Rene Haas, chief executive officer of Arm, is expected to join SoftBank’s board of directors in June. BLOOMBERG