Arm IPO Archives - theprimarymarket.com

SoftBank Looking for More AI Deals Following Arm IPO

Mona S — Sat, 16 Sep 2023 16:54:00 +0000

SoftBank is looking to engage in more artificial intelligence deals after the mammoth initial public offering (IPO) of its Arm unit. Arm’s secured a $54.5 billion valuation in its IPO on Wednesday.

Masayoshi Son, founder and chief executive, is reportedly ready to invest tens of millions of dollars into AI according to two sources familiar with the matter. This could include entering into a strategic partnership with ChatGPT maker OpenAI, the Financial Times claimed on Saturday. Son, a frequent user of the ChatGPT AI-powered chatbot, has revealed that he speaks “almost every day” to OpenAI CEO Sam Altman.

Aside from Open AI, SoftBank is exploring a range of options for entering into the AI realm, including the purchase of Graphcore, a UK-based AI chipmaker. This is the first time that the company is actively looking to expand after being in “defense mode” since May 2022 when tech valuations crashed as higher interest rates hit the global banking sector.

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Arm Stock Surges After Nasdaq Debut

Nick M — Fri, 15 Sep 2023 08:55:00 +0000

Shares in British chipmaker Arm Inc. surged after it made its stock market debut on Thursday afternoon with shares priced at $56.10. Arm’s stocks jumped by 10% as trading commenced and were 20% higher at over $61 after 30 minutes of trading. The stock closed the day at around 25% higher than its opening price of $51.

While the company’s valuation was $54.5 billion as it debuted on the Nasdaq Composite Index, Arm’s valuation was pushed above $60 billion at the market’s close. This is the highest-profile IPO that the Nasdaq has experienced since 2021’s IPO boom. In 2022, the index experienced a significant slump.

“This is a great first step to reopening what has been sort of an 18-month drought of IPOs in the US tech market,” Blueshirt Group managing director Mark Roberts commented.

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Goldman Sachs CEO Expects IPOs to Bolster Capital Markets

Nick M — Sat, 09 Sep 2023 10:28:00 +0000

Goldman Sachs CEO David Solomon is confident that the incoming wave of initial public offerings (IPOs) will help to fuel a “pickup in the capital markets activity” in the coming fall season. “Obviously an environment with more capital markets activity is a good environment for Goldman Sachs,” Solomon stated in an interview.

Solomon’s comments come as the investment firm faces a tumultuous financial situation, having reported its weakest quarterly profits in three years. This is the latest hurdle in a two-year slump for Goldman Sachs, which has led to criticism aimed at Solomon and his leadership style. Goldman Sachs’s stocks are down 5.5% this year.

Arm Holdings, the chip designer owned by SoftBank Group, as well as online grocery shopping platform Instacart have been among the best-performing IPOs this year, boosting hopes for further success this year.

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Arm Looks to Raise $4.87 Billion in IPO

Lee K — Thu, 07 Sep 2023 06:24:00 +0000

Chip designer Arm Holdings Ltd. is aiming to raise $4.87 billion in the company’s long-anticipated initial public offering (IPO). This is nearly half the amount that the company initially expected to raise upon going public.

Owned by SoftBank Group Corp., the computer processor maker is set to offer a total of 95.5 million American depositary shares at its IPO, with prices in the range of $47 to $51 each. This would value the company at around $54.5 billion, Bloomberg News reported.

Previously expecting to raise between $8 billion and $10 billion, Arm lowered its target after SoftBank decided to purchase a 25% stake through its Vision Fund. Following the IPO, SoftBank is still expected to own a 90% stake in the company.

Even at the lower end of its target range, Arm will emerge as the world’s largest IPO this year, surpassing the $4.37 billion raised by Johnson & Johnson consumer health spinoff Kenvue Inc.

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Arm Lowers Expectations For IPO Given Market Conditions

Belle M — Tue, 05 Sep 2023 06:02:00 +0000

Changing market conditions have prompted chipmaker Arm to lower its expectations in terms of market valuation and the amount it will raise upon launching its initial public offering (IPO). In addition to reporting a decline in revenue, Arm has also engaged in a higher-than-expected level of business in China, thereby adding to its risk.

Operating most of its Chinese business through Arm China, this is the SoftBank-owned chipmaker’s single largest customer, accounting for a quarter of sales for the year ended March. Arm’s total revenue declined by 1% last year to $2.68 billion.

Now, the chip designer is lowering its expected valuation from a range of $60 billion to $70 billion to a range of $50 billion to $60 billion. The company expects to raise between $5 billion to $7 billion through its IPO, down from its previous projection of $10 billion.

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