Published by: Priyanka Deshpande
UK-based technology firm Arm Holdings Ltd., known for its expertise in chip design, on August 18 submitted an application for a listing on the NASDAQ stock exchange in the United States.
Set to become the largest initial public offering (IPO) of the year in the US, here are 10 key things to know about the upcoming Arm IPO.
Submission of application to be listed on the NASDAQ stock exchange, signaled its aim to become a publicly traded entity in the US.
The IPO is led by major firms like Barclays Plc, Goldman Sachs Group Inc, JPMorgan Chase & Co, and Mizuho Financial Group Inc, with Morgan Stanley notably absent.
Arm's US listing over its domestic market hit the London Stock Exchange, indicating a strategy to access the US market.
Arm's roadshow begins in early September, and the IPO's pricing is anticipated the next week.
While the company didn't disclose specific terms in the filing, Arm is expected to target a valuation of $60-70 billion, according to experts.
Arm has talked with key customers about backing the IPO, highlighting strong investor interest.
Initially targeting $8-10 billion, Arm's IPO goal might shift due to SoftBank's move to keep more ownership post Vision Fund's stake purchase.
Arm is a crucial player in the chip industry, licensing instruction sets that power mobile, PC, and server chips. Its push into complete chip designs has proven more profitable.
Tech giants like Amazon, Alphabet, AMD, Intel, Nvidia, Qualcomm, Samsung, and Apple (iPhone chips) rely on Arm's technology.
SoftBank's bid to sell Arm to Nvidia met regulatory hurdles due to competition and security concerns. Acquired in 2016 for $32 billion, SoftBank aims to profit from Arm's IPO.