2023-08-23 07:31:54
The Rain Group, as financial advisor, appeared on the front page of the IPO filing by Arm Holdings Ltd, outranking the 28 banks that will manage the listing.
Rain and Arm have an important relationship, as both companies are backed by the SoftBank Group.
IPO financial advisors, like Rain, do not act as underwriting managers, nor do they buy or sell shares. Financial advisors are sometimes used to help companies organize a large listing, with the participation of many banks.
Arm revealed, in a disclosure statement submitted Monday to the US Securities and Exchange Commission, that in return for Rain’s advisory services for the IPO, the bank can obtain similar compensation to the institutions that manage the IPO.
Rain was paid $2.5 million for its services during the year ended March 31, according to the disclosure. Arm said that the work that Rain has already done gives it the right to receive 5% of the discounts and commissions of the subscription, which is expected to be the largest initial public offering of the year, and the bank can earn an additional 5% of those discounts and commissions.
ARM is targeting a valuation of more than $60 billion with its September offering
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