![]() ![]() The company’s return to the public market is being closely watched as it promises to be the biggest US IPO since 2021. Smartphone sales have been on the decline as hardware innovation slows down and customers hold onto their devices for longer stretches of time. Still, if the IPO values Arm at $52 billion, that would represent a retreat from the valuation of about $64 billion implied by SoftBank’s purchase of the remaining 25% stake in the company from its Vision Fund unit for approximately $16.1 billion just last month. ![]() But it didn’t pass muster with global antitrust regulators, and was called off in February 2022. In 2020, SoftBank tried to offload Arm to Nvidia for $40 billion, in what would have been the biggest chip deal of all time. (Photo by Toshifumi KITAMURA / AFP) (Photo credit should read TOSHIFUMI KITAMURA/AFP via Getty Images) TOSHIFUMI KITAMURA/AFP via Getty ImagesĪrm's mega IPO could be just around the corner, a year after the biggest chip deal in history fell apart Japan's SoftBank Group said on August 7 its first-quarter net profit more than tripled thanks to exceptional gains related to the sale of shares in Chinese e-commerce giant Alibaba. Softbank group CEO Masayoshi Son answers a question during a press conference to announce the company's financial results in Tokyo on August 7, 2019. The company was public until 2016, when Japan’s SoftBank bought it for $32 billion. The Cambridge-based firm develops microchips for phones and tablets and licenses them to CPU makers, including Apple and Samsung. Many of the biggest names in global tech, including Apple ( AAPL), Google ( GOOGL), Nvidia ( NVDA), AMD ( AMD), TSMC ( TSM), Samsung and Intel ( INTC) have all indicated an interest in acting as cornerstone investors, and could buy shares worth up to $735 million collectively in the IPO. That could rise to $5.2 billion if the banks underwriting the IPO exercise an option to buy additional shares from SoftBank. The firm’s Japanese owner SoftBank is hoping to raise as much as $4.9 billion when Arm starts trading on the Nasdaq, according to a Tuesday filing with the Securities and Exchange Commission. So far this year, a record US$12.5 billion by Chinese firms has been raised from 34 US listings, Refinitiv data shows, well up from the US$1.9 billion from 14 deals in the same period a year ago.Įight Chinese companies including home service platform Daojia Ltd and Atour Lifestyle Holdings have made public filings with the Securities and Exchange Commission (SEC) to list in the US later this year, a review of the filings showed.A who’s who of Big Tech companies is set to invest in one of the most highly anticipated initial public offerings in recent memory, a blockbuster event that could value a British chip designer at as much as $52.3 billion.Īrm, which designs chips for 99% of the world’s smartphones, is aiming to price its shares between $47 and $51 each when they hit the US stock market later this month. ![]() US capital markets have been a lucrative source of funding for Chinese firms in the past decade, especially for technology companies looking to benchmark their valuations against listed peers there and tap an abundant liquidity pool. Morgan Stanley and Bank of America declined to comment, while CICC did not respond to a Reuters request for comment. Morgan Stanley, Bank of America, and China International Capital Corp Ltd (CICC) were the investment banks on the deal. LinkDoc did not immediately respond to a request for comment. The sources declined to be identified as the information has not yet been made public. The book closed one day earlier than planned on Wednesday, one of the three sources and a separate person said. It had planned to sell 10.8 million shares between US$17.50 and US$19.50 each. ![]()
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