Arm Stretches Its Arms - Eyes Nasdaq Debut With Blockbuster $52B Valuation


After a failed acquisition attempt by Nvidia, Arm, owned by SoftBank, is once again gearing up to become a publicly traded company. According to SEC filings, the company is eyeing a staggering valuation of $52 billion, making Arm's IPO the largest on the US Stock Exchange this year.

A Return to Public Trading

Arm, once a publicly traded company, entered the private sector when SoftBank offered a $32 billion acquisition deal in 2016. Now, Arm is set to raise approximately $8 billion through its IPO on Nasdaq, translating to a per-share price in the range of $47 to $51.

The Antitrust Hurdle

The decision to take Arm public comes in the wake of the collapsed takeover plans by Nvidia. Concerns about antitrust issues raised by various regulatory bodies led to Nvidia dropping its acquisition plans. SoftBank, no stranger to recent high-profile setbacks, including the WeWork debacle, sees an opportunity amid the surge in AI.

Arm's Strategic Position

Arm's reference designs are licensed by nearly all ARM-based processor manufacturers, including tech giant Apple. This strategic positioning in the heart of the semiconductor industry gives SoftBank a chance to recoup some of its recent losses. Whether Arm will prove to be a golden egg-laying goose for SoftBank remains uncertain, but the current tides seem to be in their favor.

 

Sources:

SEC F-1 Filing  

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