ARM’s IPO on the New York Stock Exchange is getting closer and closer. Masayoshi Son, the SoftBank executive who currently owns the British chipmaker, has indeed just taken the first official steps to launch the IPO process.
An agreement reached
It is one of the priorities of the Japanese conglomerate since the aborted takeover of ARM by Nvidia at the beginning of 2022. As it is of paramount importance, Masayoshi Son has put his duties as CEO of SoftBank aside. The group is currently going through a difficult period by accumulating losses, and is counting on the IPO to get back on its feet.
According to Financial TimesSoftBank and the New York Stock Exchange on Monday reached an agreement in principle on ARM’s listing project. His boss must give his approval this week by signing a resolution with the Nasdaqmarking the first formal step in the IPO process of the chip designer whose technology powers 95% of smartphones on the market.
Masayoshi Son is thinking about solutions to make ARM more profitable
The company hopes to be valued at more than $50 billion, and is looking to raise at least $8 billion in its IPO. On the investors’ side, it is estimated that the valuation should be between $30 billion and $70 billion.
The operation is eagerly awaited by the entire industry, after a long period of scarcity in the sector due to the economic slowdown. Goldman Sachs, JPMorgan Chase & Co, Barclays and Mizuho Financial Group are expected to lead the deal, but the final list is also expected to include other investment banks.
According to people familiar with the matter, no double listing in New York then in London is currently envisaged. For a long time, the UK government pushed for ARM to float on the London Stock Exchange, in order to keep its most important technology company at home.
The IPO in New York should take place after the summer. Masayoshi Son has already started proceedings to boost the valuation of the company. For example, he changed his business model to generate more revenue.
