SoftBank Group's Vision Fund chief executive Rajeev Misra says it will outline proposals for a blank-check company in the next two weeks.
Many high-profile companies are taking advantage of the trendy fundraising platform.
The special purpose acquisition company, or SPAC, will be managed by Vision Fund Two and will include money from both outside participants and the fund, sources said.
SoftBank's $100 billion Vision Fund is known mainly for its spending in startup companies. The Japan group has spent money on technology-concentrated companies including Nvidia, Slack, ARM, Uber and WeWork.
Companies seeking financial backing scrambled to private markets a few years ago. The public market is now their target, Misra said in a virtual meeting.
"Why would you take money from us when you can get better valuations from the public market with no strings attached?" MarketWatch quoted him saying. According to Misra, Softbank Group is "sitting on a lot of cash" but its problem is "investment opportunities," Barron's reported.
Misra teased the effort in a Bloomberg interview during the Milken Institute's digital discussions, without elaborating. He separately addressed recent reports that SoftBank was the "Nasdaq whale" and gave little weight to its influence in creating noise in the financial market for technology company shares.
The Japan group hasn't disclosed the target size of the SPAC, Bloomberg reported.
Misra described SPACs as a tool that might allow it to concentrate on one company - rather than a set of companies.
Meanwhile, SoftBank-backed real-estate company Opendoor was poised to combine with Social Capital Hedosophia Corp II, a blank-check company led by Chamath Palihapitiya, in a $4.8 billion deal.
