Apple, other leading chipmakers to invest in Arm as it eyes September IPO

SoftBank Group’s Arm, a British chip design unit, plans to go public on the Nasdaq in September. The company is expected to be valued at more than $60 billion, making it the world’s biggest IPO so far this year. SoftBank will file for the listing with the U.S. Securities and Exchange Commission later this month, and it must obtain approval from Nasdaq before the IPO can proceed.

Leading global chipmakers, including Apple, Samsung Electronics, Nvidia, and Intel, are expected to invest in Arm as soon as the company is listed on the market. This is a major coup for Arm, as it will give it access to the capital it needs to grow and innovate. It will also help to solidify Arm’s position as a leading player in the global chip market.

Masayuki Shikata and Akira Yamashita for Nikkei Asia:

Arm’s share flotation is slated for mid- to late September. The company is sounding out investor demand and hopes that Arm’s corporate value will rise further. The chip designer’s valuation has doubled since SoftBank Group bought the company for $24 billion pounds ($31 billion at the time) in 2016.

At present, 75% of Arm’s shares are owned by SoftBank Group, while the remaining 25% stake is held by the SoftBank Vision Fund, a unit that invests in tech companies around the world. The Vision Fund will sell 10% to 15% of its Arm shares on the open market.

Arm plans to welcome the big chipmakers as medium- to long-term shareholders, selling them stakes of a few percent each. This is meant to stabilize the stock price at the time of the listing.

MacDailyNews Take: Certainly a better outcome than Nvidia owning the whole enchilada.

See also: SoftBank kills sale of Arm Ltd. to Nvidia over regulatory hurdles; will IPO instead – February 8, 2022

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