Insiders give clues
Biggest IPO of the year looming?
4/29/2023, 7:04 p.m
As early as March, the Japanese Softbank announced that it intends to list chip designer ARM. Now it seems to be getting concrete: According to insiders, a corresponding application is being made to the supervisory authorities in the USA. It would be the biggest IPO of the year so far.
According to insiders, the Japanese technology investor Softbank is pushing ahead with the multi-billion dollar IPO plans for its chip designer ARM in the USA. ARM has filed a confidential IPO application with US regulators, people familiar with the matter said. This would pave the way for the biggest IPO of the year so far.
According to the information, the British chip designer, on whose designs practically all smartphone processors are based, is aiming for a listing on the New York technology exchange Nasdaq this year and is aiming for eight to ten billion dollars in revenue. The exact timing and scope of the IPO will depend on market conditions. Softbank and ARM declined to comment.
According to earlier information, the total value of ARM is estimated at more than 50 billion dollars. Softbank has been aiming for an IPO since the chip developer’s planned sale to US graphics card specialist Nvidia for $40 billion last year failed due to objections from US and European antitrust authorities.
Jump in sales in the first quarter
Softbank announced in March that it would list ARM in the United States. The filing now shows that the company is pushing ahead with the plans despite adverse market conditions.
Recently, ARM’s business has outperformed the chip industry as a whole as the company has focused on data center servers and PCs, which earn higher licensing fees. According to the company, sales in the previous quarter rose by 28 percent. Softbank wants to flush billions into its coffers with the IPO to cushion losses from other technology holdings.