NEW YORK : Chip designer Arm signed up 28 banks for its blockbuster initial public offering without giving them a fee arrangement, a reflection of owner SoftBank Group's leverage over underwriters clamoring for a role, according to people familiar with the matter.While it is common for the fees that banks
NEW YORK : Chip designer Arm signed up 28 banks for its blockbuster initial public offering without giving them a fee arrangement, a reflection of owner SoftBank Group's leverage over underwriters clamoring for a role, according to people familiar with the matter.
Goldman Sachs, JPMorgan Chase, Barclays and Mizuho Financial Group, which are lead underwriters, as well as the other banks comprising the IPO syndicate, are going along with this because they are keen for a role on the biggest U.S. stock market listing since electric car maker Rivian Automotive went public in 2021, raising $13.7 billion, the sources said.
This kind of fee arrangement is not unprecedented for SoftBank, which has previously held back on fee details in high-profile capital market transactions that attract interest from underwriters. It also left the fee arrangement vague on its $21 billion stock sales at U.S. wireless carrier T-Mobile in 2020, until the very end, according to the sources.
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