Arm Holdings Ltd is set to launch its investor roadshow after Labor Day, as the chip designer prepares for its anticipated initial public offering (IPO) in September, according to sources familiar with the matter. The company, owned by SoftBank Group Corp, is expected to announce a price range for its offering next week, while also revealing plans to price its shares on September 13, with stock trading starting the following day.
It has been reported that SoftBank plans to sell approximately 10% of Arm’s shares in the IPO, with the aim of achieving a valuation of $60 billion to $70 billion. This follows SoftBank’s decision to reduce the number of Arm shares it would sell in the IPO, after recently acquiring the 25% stake in Arm that it did not directly own from its Vision Fund unit.
Previous reports have indicated that various Arm customers, including Apple, Amazon.com, Intel, Nvidia, Alphabet, Microsoft, Samsung Electronics, and TSMC, have engaged in discussions about participating in the IPO. In response, Arm and SoftBank have reserved 10% of the shares that will be sold in the IPO for their clients.
A successful IPO for Arm could prove beneficial for SoftBank, which recently reported its third consecutive quarterly loss due to declines in the valuations of major holdings such as Alibaba Group, Deutsche Telekom, and T-Mobile U.S.
The lead underwriters for the offering are Goldman Sachs Group, JPMorgan Chase, Barclays, and Mizuho Financial Group. Arm’s shares will be listed on the Nasdaq exchange and trade under the ticker symbol ‘ARM’.
Bloomberg had previously reported on the timeline for Arm’s IPO.
(Reporting by Anirban Sen in New York; Editing by David Gregorio)
Credit: The Star : Tech Feed
