Softbank-owned Arm Holding, a British semiconductor and software design company, announced on Monday, August 21, that it has filed for its Initial Public Offering (IPO) on the Nasdaq exchange under the ticker “ARM.”
According to experts, ARM’s IPO is expected to be one of the largest IPOs in recent years. However, the company did not provide proposed terms for the share sale in the document. Arm is expected to seek a valuation of $60B to $70B.
Raine Securities LLC acted as a financial advisor while Barclays, Goldman Sachs, J.P. Morgan, and Mizuho are joint book-running managers for the proposed offering.
According to the filing, ARM reported $524M in net income on $2.68B in revenue in fiscal 2023, just below its $2.70B the year before. Sales for the Q2 dropped 2.5 per cent to $675M.
The announcement comes 18 months after NVIDIA abandoned its offer to buy Arm for $40B due to pushback from the regulators who raised concerns over competition and national security.
Softbank acquired Arm in 2016 in a deal valued at $32B.
ARM Holding: Revolutionising semiconductor industry
Founded in 1990, Arm Holdings is a British semiconductor and software design company renowned for its contributions to the semiconductor industry.
The company’s influence spans various sectors, from smartphones and tablets to IoT devices and servers. Its processor designs are licensed to numerous manufacturers who integrate them into their products, resulting in an extensive ecosystem with over 250 billion Arm-based chips shipped to date.
Accordion to the company, more than 260 companies have shipped Arm-based chipsets in the fiscal year that ended on March 31, 2023, including large technology companies like Amazon, Alphabet, Intel, NVIDIA, Qualcomm, Samsung, and Apple, among others.
The company’s architecture prioritises energy efficiency, making it particularly suited for mobile and battery-powered devices.
It has not only revolutionised the mobile industry but has also gained traction in the high-performance computing sector, where power efficiency is becoming increasingly critical.
Arm works with more than 1,000 technology partners to enable artificial intelligence to work smoothly in any scenario.
