MSFT - Chip design firm Arm said to target $60B IPO next month

2023-08-02 07:23:13 ET

Arm, the British semiconductor design firm owned by Japanese tech conglomerate SoftBank ( OTCPK:SFTBY ), is reportedly targeting an initial public offering worth some $60B that could happen as soon as next month.

The offering could raise as much as $10B and the roadshow is slated to occur the first week of September, with pricing set for the following week, Bloomberg reported , citing people familiar with the matter.

While the $60B valuation on Arm is underscored by investors' appetite for artificial intelligence, executives for the company could try to press for an $80B valuation, the news outlet added, citing one of the people.

It was previously reported that the valuation for the firm had ranged between $30B and $70B.

Last month, it was reported that Arm had spoken to Nvidia ( NASDAQ: NVDA ) about being an anchor investor in the offering. Arm has also spoken to a number of tech companies, including Intel ( INTC ), Alphabet ( GOOGL ), Apple ( AAPL ), Microsoft ( MSFT ), Taiwan Semiconductor ( TSM ), and Samsung Electronics ( OTCPK:SSNLF ) about participating in the IPO.

In February 2022, Nvidia ( NVDA ) abandoned its deal to acquire Arm for approximately $40B due to pressure from global regulators and other semiconductor companies.

Investment banks reportedly leading the offering include Goldman Sachs ( NYSE: GS ), J.P. Morgan ( NYSE: JPM ), Barclays ( BCS ) and Mizuho Financial.

Arm has been trying to raise the price of its chip designs in an effort to boost sales ahead of its upcoming initial public offering. The company designs processors for electronics and licenses its technology as intellectual property to several tech companies around the world, including Nvidia ( NVDA ), Apple ( AAPL ), Qualcomm ( QCOM ) and others.

Arm scrapped plans for a London listing in July 2022 due to the political situation in the U.K. government at the time. Seeking Alpha reported that the resignations of a U.K. investment minister and digital minister, who had played leading roles in talks with SoftBank ( OTCPK:SFTBY ) led to the breakdown in talks.

Arm CEO Rene Haas said in February that the semiconductor design company was "committed" to having an IPO this year.

Arm was purchased by SoftBank ( OTCPK:SFTBY ) in 2016 for $32B.

More on SoftBank

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• SoftBank Group: Significantly De-Risked And Positioned Well For The Future
• SoftBank: Damage Limitation With AI And ARM IPO Prospects, But Wait

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