SoftBank to unveil largest technology company listing on US ‎stock exchange

Arm Ltd. is expected to announce its initial public offering (IPO) as soon as Monday, according to Bloomberg reports, giving the market a peek into the chip designer’s financial health 7 years after the acquisition by Soft Group. bank on it.

The IPO, scheduled for September, is on track to be the largest of the year and could be one of the largest technology company listings ever on a US stock exchange.

According to “Al-Arabiya” agency, “Bloomberg News”, that “Arm” was targeting a valuation of between $ 60 billion to $ 70 billion in an initial public offering to raise between $ 8 billion to $ 10 billion, but this goal may be less. Since “Soft Bank” decided to keep more of the company after buying the “Vision Fund” stake

Arm will not have to disclose the proposed size and price for selling the shares until subsequent filings are filed with the US Securities and Exchange Commission, according to what was seen by Al Arabiya.net.

The listing is set to be the largest in the United States since the $13.7 billion offering of electric vehicle maker Rivian Automotive in November 2021.

Arm’s emergence could spur dozens of start-ups such as online grocery delivery company Instacart Inc and marketing and data automation provider Klaviyo to pursue their own IPO plans.

Arm sells the schematics needed to design microprocessors, and licenses technology known as instruction sets that dictate how programs communicate with those chips. The energy efficiency of Arm technology has made it ubiquitous in phones where battery life is critical.

Potential investors will examine how Cambridge, UK-based Arm plans to diversify beyond its mobile chip designs, which are used by tech giants such as Apple and Amazon. While draft documents show that Arm’s annual revenue fell 1% in the most recent fiscal year.

CEO Rene Haas has been guiding the company to sign up more customers who make chips for computers, servers and data centers, a more profitable area than the mobile phone market.

The listing would be a welcome event for fee-hungry investment bankers, whose commissions and bonuses have shrunk with a dearth of IPOs this year.

In what is the worst year for initial public offerings in the United States since the depths of the financial crisis in 2009, IPOs have raised $14.4 billion since January.

“Bloomberg” agency reported that there are at least 28 investment banks participating in the IPO of the “Arm” company.

The IPO will include several strategic investors, who will buy about $100 million in common shares each, according to Bloomberg sources.

The lineup was not specified, but Arm clients and partners such as Intel, NVIDIA and Amazon are among the candidates.