According to Reuters, as of 2017, a quarter of Arm’s shares are owned by the investment fund Vision Fund, whose founder and main shareholder is the parent company SoftBank, which controls the remaining 75% of shares in the British developer of processor architectures. SoftBank is rumored to expect to buy back its shares in the prospective issuer from the Vision Fund before Arm’s public offering.
Negotiations are ongoing between SoftBank officials and the relevant fund, including third-party investors in the latter, to complete the transaction before September, when Arm’s shares go public on the US Nasdaq stock exchange. In 2016, SoftBank bought Arm’s assets off the market for $32 billion, and a year later, a quarter of the company’s shares were transferred to the Vision Fund for $8 billion. ReutersIf the Vision Fund remains unchanged, it will sell its shares for at least a year or two after Arm’s IPO. A deal to sell the entire stake in SoftBank’s parent company ahead of the offering will help raise the required funds more quickly.
For SoftBank itself, this deal is beneficial in that it allows it to concentrate a larger portion of Arm’s stock, up to 85% or 90%, in its own hands. Keep in mind that with Arm’s estimated capitalization at $60-70 billion, the Japanese group expects to raise up to $10 billion from an IPO, and if it buys out Vision Fund’s stake first, it will almost never have to part with this arm stocks. Directly, the Vision Fund recently reported a gain of $12.4 billion from an investment of $89.6 billion, but the investment of $51.8 billion resulted in a loss of $18.6 billion. Dollar.