Arm’s Record-Breaking IPO: Apple, Samsung, Intel, and Nvidia Poised to Invest

Arm, the British chip design unit and a subsidiary of SoftBank Group is gearing up for a momentous step by initiating an Initial Public Offering (IPO) on the Nasdaq in September. This anticipated IPO is set to be a landmark event, projected to amass an impressive market capitalization exceeding $60 billion, thereby making it the most substantial IPO of the year. A report from Nikkei Asia indicates that tech giants like Apple, Samsung, Intel, and Nvidia are poised to join as investors following Arm’s listing.

More about the Arm IPO

As the Nasdaq listing procedure readies for initiation, SoftBank Group is preparing to formally present its application to the U.S. Securities and Exchange Commission within the upcoming weeks. As per the previously mentioned report, Arm’s initial public offering (IPO) is currently anticipated to take place within the approximate timeframe of mid to late September. The company is actively gauging investor interest and aiming to bolster its corporate valuation. This strategic move comes on the heels of Arm’s remarkable valuation escalation since its acquisition by SoftBank for $24 billion in 2016, a figure that has since doubled.

At present, SoftBank Group holds a commanding 75% ownership stake in Arm, while the remaining 25% is held by the SoftBank Vision Fund, a dedicated technology-focused investment arm. Notably, the Vision Fund plans to divest a notable portion—around 10% to 15%—of its Arm shares on the open market, as suggested by the Nikkei Asia report.

Furthermore, the report outlines Arm’s strategic plan to engage prominent chip manufacturers such as Nvidia and Intel, alongside tech powerhouses Apple and Samsung, as medium- to long-term shareholders. The strategy involves offering these entities fractional ownership stakes, aimed at stabilizing the stock price upon the company’s listing.

Located in the technology hub of Cambridge, United Kingdom, Arm stands as a pivotal player within the global semiconductor sphere. The company’s intricate chip designs have commanded a remarkable 90% share of the global market for smartphone chips. These designs, renowned for their energy-efficient attributes that optimize battery life, are particularly cherished within the smartphone ecosystem.

In the fiscal year 2022, Arm witnessed a significant surge in sales, reaching an impressive $2.8 billion. This remarkable figure signifies a staggering 70% increase compared to its pre-SoftBank acquisition performance in 2016. Notably, over 250 billion chips powered by Arm’s designs have found their place in devices shipped globally.

Following SoftBank’s acquisition of Arm in 2016, the company swiftly evolved into a cornerstone of the conglomerate. Subsequent to a $40 billion buyout bid from Nvidia in 2020, which was ultimately abandoned due to regulatory impediments, SoftBank embarked on the journey of taking Arm public—an endeavor that is now unfolding on the IPO stage.