Arm files “confidentially” for IPO on Nasdaq
As expected Processor IP licensor Arm Ltd. (Cambridge, England) has filed an IPO registration statement with the US Securities and Exchange Commission, although the filing was “confidentially submitted.”
This means the proposed date for the filing is unknown and Arm said that the size and price range for the proposed offering have yet to be determined. However, it is thought that SoftBank needs to raise between about US$8 billion and US$10 billion before the end of September 2023. That would likely be only a small percentage of Arm’s which is thought to have a value of between US$30 billion and US$70 billion.
SoftBank has been planning for an Arm IPO since the proposed US$66 billion takeover of the company by Nvidia broke down under pressure from the UK regulator (see Analysis: Arm CEO replaced as ‘unwanted’ sale to Nvidia cancelled). But in the west IPOs have been few and far between in the economic uncertainty following Covid-19 and Russia’s invasion of Ukraine.
Intel pursued a listing for Mobileye in 2022 but got significantly lower value than had previously been expected (see IPO for lossmaking Mobileye values company below $16 billion). However, with the company’s focus on IP licensing, Arm has been performing better financially than many of its peers. And there have also been reports about potential business model and royalty rate changes that could encourage would-be investors
Related links and articles:
News articles:
Arm goes for US-only listing, but is Bristol bound
Arm prototype processor raises business model questions
Arm grows market share in bouyant IP market
Report: Arm proposes change to IP royalty model
Arm results shine bright in SoftBank mire
Analysis: Arm CEO replaced as ‘unwanted’ sale to Nvidia cancelled
IPO for lossmaking Mobileye values company below $16 billion
