Arm files for Nasdaq listing

Arm files for Nasdaq listing

Next month, parent company SoftBank is expected to bring part of its 2016 stake in British processor architecture developer Arm to the US. A corresponding application was submitted earlier this week, which only defines part of the placement parameters. It does not say how many shares will be placed in the US and at what price.

    Image source: Getty Images

Image source: Getty Images

So far, these dates have only been discussed at the level of rumors. Japanese group SoftBank, which bought 25% of Arm’s shares from sister fund Vision Fund, is believed to now be able to retain nearly 90% of the British developer’s stake but won’t gain more than $8, or $10 billion US dollars as a result of the placement. The capitalization of all Arm assets is estimated at $60-$70 billion. In fact, based on all the above information, the documents released yesterday only confirm the fact that Arm bought out 25% stake in Arm from the Vision Fund for $16.1 billion, but from the parent company insiststhat no conclusions about Arm’s capitalization need to be drawn from this amount. This is formally valued at $64 billion, but until the shares are placed in the US, terms may change.

In his filing, Arm states that it is primarily an engineering company. About 80% of the employees (4753 people) focus their activities on research, development and technical innovation. The company has 6,800 pending patents of varying scope, with an additional 2,700 patent applications pending worldwide. In the past fiscal year, more than 260 companies were Arm customers. She has worked with the top ten licensed clients for an average of more than 20 consecutive years.

Prior to listing on the US Nasdaq Stock Exchange, Arm will be registered as Arm Holdings Plc and will appear under the ticker symbol ARM on that stock exchange’s information system. Four investment banks, Barclays, Goldman Sachs, JPMorgan Chase and Mizuho Financial Group, will lead the process of placing ARM shares on the stock exchange. There will be 24 other lower status subscribers attending the event, however Morgan Stanley is not on either list. The ARM filing also revealed that the company reduced revenue by 1% to $2.68 billion in its most recent fiscal year ended March 31.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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