Arm Holdings, which is part of the ownership structure of SoftBank Group, has taken the first step toward initial public offerings of shares.
The company is currently betting that there will be a significant breakthrough in the history of its existence, which will mark a kind of transformation of a previously little-known developer of telephone chips into a thriving company in the era of the development of computing based on artificial intelligence. Transformation in this case is a conditional definition in a certain sense since it implies not a miraculous change after the wave of the magic wand of a mythical creature and a technological transition as a result of the gradual development of the company.
Arm reported that the placement of shares is led by Barclays Plc, Goldman Sachs Group, JPMorgan Chase&Co. and Mizuho Financial Group.
If the chip maker’s debut proves successful, SoftBank founder Masayoshi Son will make a significant profit, which will definitely not be superfluous after his Vision fund lost $30 billion in 2022. Also, a successful start of Arm could potentially become a motivating factor for dozens of other companies that, for certain reasons, including fears, do not dare to conduct an IPO.
The chip manufacturer will start its roadshow in the first week of September. The company plans to announce the IPO price next week. The firm has not yet declassified the proposed terms of the sale of shares, but analysts predict that Arm will seek a valuation in the range of $60 billion to $70 billion. She also held talks with some of her largest clients about IPO support.
The placement of shares is also a significant event for the IPO market, which is currently experiencing a difficult state of affairs. Arm will provide the market with the biggest rise in almost two years.
The targeted assessment of the chip manufacturer is a reflection of the confidence that this company will be able to be on the crest of the wave of success associated with the rapid technological transition to artificial intelligence chips and generative AI. The shift in the industry contributed to the growth of Nvidia’s value to the historical mark of $1.2 trillion.
Kyle Stanford, an analyst at PitchBook, says that Arm’s high performance will not only improve SoftBank’s profitability but will also become a kind of base for strengthening the corporation’s strategy in the area of artificial intelligence.
As we have reported earlier, SoftBank Reportedly Negotiates to Buy Vision Fund’s Stake in Arm.