The financial world is buzzing with anticipation, and all eyes are set on SoftBank Group’s Arm. The chip maestro announced its ambition for a dazzling debut on the US stock market, aiming for a spectacular $52 billion valuation. If this were a movie, it’d be the blockbuster of the year!
Picture this: SoftBank is setting the stage with 95.5 million glitzy American depository shares, each priced between $47 to $51. The potential climax? Raising a jaw-dropping $4.87 billion! But here’s the twist – this valuation is a bit of a step down from the $64 billion SoftBank recently shelled out to acquire a 25% stake in Arm from its Vision Fund. However, insiders whisper the intrigue surrounding the IPO is electric, with clients eager to strengthen ties and ward off rival advances.
When the curtains drop, SoftBank will comfortably sit with 90.6% of Arm’s ordinary shares, choosing not to pocket any proceeds from this epic performance.
Now, every great movie has its star-studded cast. In Arm’s IPO narrative, we see tech titans like Apple, Nvidia, Alphabet, Intel, and Samsung Electronics playing pivotal roles, indicating a collective interest in snapping up $735 million of the shares on offer.
This stock market saga isn’t just about numbers. It’s a symbolic journey for SoftBank, highlighting its commanding presence in a world where 99% of smartphones run on Arm’s designs. And the IPO? It’s more than just a financial event. It’s a beacon of hope, signaling tech investors’ renewed hunger and echoing the spirit of Rivian’s 2021 listing.
Behind the scenes, Arm’s story spans decades. Born in 1990 from the union of Acorn Computers, Apple Computer, and VLSI Technology, it shone on the stock exchange stages of London and Nasdaq till 2016. Then came SoftBank, taking it private in a $32 billion grand gesture.
With Barclays, Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group leading the charge, this IPO is set to be an unforgettable act!