SoftBank Group Corp. is preparing to raise between $500 million and $600 million via an initial public offering of its first special-purpose acquisition company, Axios reported late Sunday, citing multiple sources.

The investment giant, which is known for backing promising technology startups, is said to be prepping for at least two additional SPACs, which are entities created for the sole purpose of merging with another firm and then taking that firm public. SPACs are becoming increasingly popular among tech firms as a lower-cost alternative to the traditional IPO process.

Axios cited senior SoftBank executive Rajeev Misra as saying that Citigroup and Goldman Sachs are lead-managing the process, and said the SPAC is intended to buy a company SoftBank has not previously invested in. It’s not clear what company SoftBank is targeting.

SoftBank Investment Advisers, which is the entity that manages Softbank’s $100 billion Vision Fund, will sponsor the SPAC, Axios said.

This is believed to be the first time SoftBank has ever raised a SPAC, though one of its portfolio companies, OpenDoor Inc., said in September that it plans to go public via a SPAC merger valued at $4.8 billion.

SoftBank has previously invested in companies such as Uber Technologies Inc., DoorDash Inc., Slack Technologies Inc. and WeWork Cos. Inc. It’s also one of the main backers of ByteDance Inc., the controversial Chinese company that owns the popular TikTok app.

SoftBank recently sold Arm Holdings Ltd., one of its major portfolio companies, to Nvidia Corp. in a deal that was reportedly worth about $40 billion.

Photo: SoftBank