What is currently probably the most important chip developer in the world, the British company ARM will go public in September. According to a media report from Asia, all major chip suppliers and other customers will then be among the investors – including Apple, Samsung, and even Intel.
SoftBank is targeting a value of at least $60 billion
According to a report by the Japanese economic service Nikkei Asia, the previous owner of ARM, the Japanese investment giant SoftBank Group, is currently planning the IPO of the British chip design specialist for the month of September. The application for the IPO is to be submitted to the American Securities and Exchange Commission (SEC) before the end of this month.
In the period between mid to late September 2023, ARM is then scheduled to officially start on the New York stock exchange Nasdaq, where numerous other large technology companies are already listed. For their part, they allegedly want to be involved as investors early on, i.e. to acquire shares in the British company.
Nvidia failed, now everyone gets something
According to the report, early investors include companies like Apple, Samsung, Nvidia, and even Intel, all of which use the proprietary CPU architectures developed by ARM in their own products. Some time ago, Nvidia attempted a multi-billion dollar takeover of ARM but failed due to resistance from international competition authorities.
Now the big chip manufacturers should each be able to acquire a few percent of the shares in ARM directly at the time of the IPO, i.e. each receive a small piece of the big cake. SoftBank hopes that this will lead to an early stabilization of the share price at a high level for the IPO. Ultimately, the major chip providers should remain involved as major investors in the medium and long term.
The previous owner, SoftBank, naturally hopes for huge profits from the ARM IPO. The Japanese bought ARM for $22 billion in 2016. Meanwhile, SoftBank is aiming for a valuation of around $60 billion for the planned IPO, so it would make tens of billions from it. It would also be the first major IPO by a tech company in nearly a year.
ARM supplies the CPU architecture for the chips of all major manufacturers of mobile devices and various other systems. The chip suppliers either develop chips with ARM’s ready-made CPU and GPU cores or adapt them more or less to their needs. ARM chips have one main advantage: they are more energy efficient than x86 designs.
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