general_info_on Arm Holdings Inc.

What is ARM Holdings Inc.?

Arm Holding Inc., also known as Arm Limited, or ARM, is a British semiconductor and software design company selling rights to the manufacturers of popular computer chips and technology as we know it today.  

ARM is a subsidiary of the Japanese tech-conglomerate company, SoftBank since its purchase in 2016 for $24B. SoftBank Group is widely known to own a stake in companies like Alibaba (e-commerce), OYO Rooms (hospitality), WeWork (coworking), and more.

When is the IPO expected to take place? 

On Monday, August 21st, Arm Holdings officially filed to begin its IPO roadshow after markets reopen from the US Labor Day holiday in early September. The official process, also known as a roadshow, began on the 5th of September. 

The official IPO launch can take place as little as one to two weeks after the roadshow is completed, thus putting a timeframe near September 14th. The actual timing depends on a number of factors, including whether the underwriters determine that a price adjustment is needed or if any snags come up involving the filing of key documents. 

ARM Holdings Inc. IPO Statistics

The valuation estimates traders are eagerly waiting for reach anywhere between $30B to $80B with high hopes for the company due to its close connections in technology that we use daily, and its agreements for its CPUs with well-known giants like Apple, and Nvidia.

2021 revenues topped 2.7B, up 35% due to its growth in royalty and non-royalty revenue. According to the proposed takeover bid that fell through in 2020/2021 Arm is reportedly worth over $40B (£29.6B).

More on ARM Holdings Inc.

In 2020, Softbank revealed its intention to sell ARM to the American chipmaker NVIDIA. Nevertheless, the substantial $80B transaction was abandoned in February 2022 due to concerns about competition raised by various governments. In addition, according to the Financial Times, ARM is facing a legal battle with its ARM China division, where the Head, Allen Wu, is taking legal action against the company. The overall lack of financial transparency is a potential risk to ARM’s upcoming IPO and makes it difficult to value the divisions of the business. Overall, this could mean that the IPO will take longer than originally planned.

Opting to list ARM instead is expected to yield less profitability compared to the potential gains from selling to NVIDIA. Despite this, ARM is currently in discussions with Nvidia to secure them as a prominent investor for its New York listing, a position shared with other major tech giants like Apple and Amazon.

• ARM’s technology is found in about 99% of the world’s smartphones including brands like Apple, Android, and Samsung.
• As new technology emerges, much is often based on Arm’s advanced processor designs including technology for self-driving cars, industrial automation, and more.