Cashing in on Arm

Cashing in on Arm

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  • Arm, the chip designer acquired by SoftBank seven years ago, is preparing to file for an IPO expected to be unveiled soon in September. This IPO, projected to be one of the largest tech listings on a US exchange, could raise $8 billion to $10 billion, potentially valuing Arm at around $60 billion to $70 billion. However, the valuation may be adjusted downward due to SoftBank's decision to retain more of Arm's ownership after purchasing Vision Fund's stake in the company. The specific size and pricing details of the share sale will be disclosed in later filings with the US Securities and Exchange Commission.
  • The IPO of Arm is anticipated to be the most substantial US listing since Rivian Automotive Inc.'s $13.7 billion offering in 2021. This development could also influence the IPO plans of other companies, including startups like Instacart and Klaviyo, either encouraging them to proceed or potentially causing delays.

Why it matters

This move follows Arm's past deal with Nvidia, which was abandoned due to opposition from customers and regulators. Despite the IPO, SoftBank will retain a majority stake, floating only about 10% of Arm's stock. The impending IPO of Arm holds significance as it provides insights into the financial health of the chip designer following its acquisition by SoftBank.


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