2023-09-03 13:02:40
Posted Sep 3, 2023, 3:02 PM
The IPO market has been sluggish in Tech for a year and a half. This means that the listing of Arm Holdings, the British designer of electronic chips owned by Softbank, is awaited with a mixture of excitement and apprehension by investors.
The deadline is expected for the month of September. The indicative price of the action might be between 47 and 51 dollars, according to sources familiar with the matter quoted by Archyde.com. A range that would value the nugget between 50 and 54 billion dollars. When contacted, Arm and Softbank declined to comment.
Arm, which would raise more than five billion dollars on the markets, might thus carry out the largest IPO in New York since Rivian (93 billion dollars), a specialist in electric vehicles, in 2021. The company would also pave the way to other big potential IPO candidates, like Instacart.
As it stands, Arm’s valuation would be a discount to last month’s $64 billion estimate, when SoftBank acquired an additional 25% stake in the company through its Vision Fund investment vehicle. in order to impose a floor price during the IPO. This difference is believed to be related to Arm’s slight drop in revenue in its staggered last fiscal year ($2.68 billion).
An important operation for Softbank
Born in 1990 in the United Kingdom, Arm has most of the Tech giants as customers (Samsung, Intel, Qualcomm, etc.), to whom it sells its technology under license. The company had announced in March its intention to carry out its IPO in the United States. A decision experienced as a humiliation for the financial center of London, in decline, where Arm was listed until 2016.
This operation is strategic for Softbank, which has suffered in recent months and is seeking to rebound. Seven years ago, the Japanese telecom group led by Masayoshi Son acquired Arm for the equivalent of $32 billion. He thus hopes to make a juicy financial operation while chips play an increasingly strategic role in the world economy (telephones, telecommunications, artificial intelligence, etc.).
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