SoftBank prepares to file Arm IPO
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SoftBank Group is expected to file an initial public offering of shares in processor intellectual property licensor Arm Ltd. this week.
The IPO is expected to take place on NASDAQ or the New York Stock Exchange as soon as September.
SoftBank reportedly recently bought out the 25 percent of Arm that it did not own from VisionFund valuing the chip company at $64 billion.
Other reports say that Arm is expected annual revenue of $2.68 billion for the year ended March 31, a decline of about 1 percent. Sales for the quarter ended June 30 were $675 million a drop of 2.5 percent.
The threat of RISC-V
The slightly lacklustre performance is explained by Arm’s heavy exposure to the mobile phone market which has been in a slump for the last eighteen months.
Softbank is reported to have asked such companies as Apple, Intel and Nvidia to be anchor investors in Arm to try and set a floor to the IPO valuation and to encourage others to invest.
The success of the IPO will depend on a couple of other factors observers said. One is the degree to which Arm can be presented as part of an AI processing revolution and the second is the degree to which it can shrug off the threat of the rival RISC-V architecture for processors.
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