SoftBank Group Corp. expects to retain a controlling stake in Arm Ltd. after the planned initial public offering of the chip business, selling a smaller portion than originally expected, according to people familiar with the matter.

SoftBank opted for an IPO of Arm, which it acquired in 2016, after a plan to sell the business to Nvidia Corp. collapsed earlier this year. SoftBank has decided that selling a smaller portion of Arm now, given the current slump in chip stocks, provides the opportunity to get a higher valuation for the remainder later, according to one of the people, who asked not to be identified because the plan isn’t yet public.

SoftBank’s raising of an $8 billion term loan — secured with shares of Arm — also has provided it with enough financial leeway to hold onto a bigger portion of the company and wait for better market conditions, said the people. The IPO will likely happen in the first quarter of next year, they said, but the size and timing of the offering could change.