Softbank's Arm Ltd, a British semiconductor and software design firm, filed its initial public offering (IPO) in the US on August 21 and is likely to be the biggest listing of the year. However, the company has not disclosed the size of the offering.
Here are the top 8 facts about the mega IPO of 2023
1. IPO pricing is expected the following week, with IPO valuation expected to be $60 billion to $70 billion, Bloomberg News reports.
2. Arm plans to start its roadshow the first week of September and price the IPO the following week, Bloomberg has reported. The company didn’t disclose the proposed terms for the share sale in the document, but it’s expected to seek a valuation of $60 billion to $70 billion. Arm, based in Cambridge, UK, also has held talks with some of its biggest customers about backing the IPO.
3. While Arm had been aiming to raise $8 billion to $10 billion in the IPO, that target could be lower since SoftBank has decided to hold onto more of the company after buying Vision Fund’s stake in it. That transaction valued Arm at more than $64 billion, based on the filing.
4. Barclays, Goldman Sachs Group, JPMorgan Chase, and Mizuho Financial Group are leading the offering. There are 24 other underwriters below that top tier, according to the filing.
5. This listing will be the largest in the US since Rivian Automotive's $13.7 billion offering in October 2021, according to various reports.
6. As of now, several media reports say that it ranks near or just behind the largest IPOs in the tech industry, including Alibaba Group's $25 billion 2014 offering and Meta Platforms' $16 billion debut in 2012.
7. Arm is one of the world's most important chip companies. In addition to mobile chips, it sells licences for a set of instructions that is at the heart of PCs and servers. Over the past few years, it has focused on selling more complete chip designs, which are more lucrative.
8. Originally, SoftBank wanted to sell Arm to chip giant Nvidia, but regulators raised concerns over national security and competition. SoftBank took Arm private in 2016 in a deal valued at $32 billion.
(With Inputs from Agencies)
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