Arm Holdings Ltd, a subsidiary of SoftBank Group Corp, is getting ready for its much-anticipated initial public offering (IPO). The company is reportedly planning to ask investors to pay between $47 and $51 per share, valuing the company at approximately $50 billion to $54 billion. If successful, this IPO would make Arm the most valuable company to list in New York since Rivian Automotive made its debut earlier this year.
SoftBank Group Corp may consider increasing the price range if investor demand proves to be strong. The current valuation represents a decrease from Arm’s previous valuation of $64 billion when SoftBank acquired a 25% stake in the company.
Arm’s sales took a hit in the past year, falling to $2.68 billion due to a decline in global smartphone shipments. However, this IPO presents an opportunity for Arm to regain momentum and offset those losses.
Several major tech companies have already expressed interest in investing in Arm’s IPO. The list of investors includes big names like Apple, Nvidia, Alphabet, AMD, Intel, Samsung, Cadence Design Systems, and Synopsys. These companies are eager to expand their commercial relationship with Arm and prevent rivals from gaining a competitive advantage.
Arm’s semiconductor designs are highly esteemed by its customers, with over 260 technology companies utilizing them to manufacture more than 30 billion chips every year. This dominance within the industry makes Arm a key player in the semiconductor market.
The IPO is expected to bring in significant capital, with the potential offering reaching $5 billion to $5.4 billion. The funds raised through the IPO will likely be used to drive innovation, enhance research and development efforts, and fuel further growth for Arm.
Investors and analysts are eagerly anticipating Arm’s IPO, as it has the potential to significantly impact the tech industry as a whole. The success of the IPO will not only affect Arm and its investors but also have far-reaching implications for the broader semiconductor market.
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