Whether or not Son resumes a feverish pace of acquisitions, having shares in Arm publicly listed will allow SoftBank to more easily use the stock as collateral, will likely improve its credit rating for better borrowing terms and help it take out the margin loans Son favours, analysts say.
SoftBank Group s successful IPO of Arm Holdings has put the company in a position to resume its acquisition spree. Arm s shares surged 25% on its first day of trading, doubling SoftBank s initial acquisition price. The IPO will enable SoftBank to use Arm s shares as collateral, improve its credit rating, and take out margin loans. Analysts believe that SoftBank s timing for acquisitions is favorable due to depressed valuations and a lack of funding for early-stage startups.