Arm’s assets are now owned by Japan’s SoftBank Corporation, but quietly filed filings over the weekend revealed it had already filed a U.S. IPO. Neither the amount that will attract nor the estimated placement rate in the application is not specified. The period for the share placement has also not yet been set – all that is known is that it should take place before the end of the year.
As noted Bloomberg, the news of SoftBank’s application to US regulators helped boost the Japanese company’s share price by 2.45%. Further preparation for the IPO process will be possible after approval of the application by the US regulators. From unofficial sources, it is known that SoftBank is expected to raise $8-10 billion, and third-party investors estimate the total capitalization of the Arm business at $30-70 billion.
After the IPO, Arm will remain a structural entity of SoftBank. The public offering of Arm shares should not have a material impact on the parent company’s financial condition. Arm CEO Rene Haas will join SoftBank’s board of directors in June. Remember that Arm was a public company until 2016 but its shares were traded on the London Stock Exchange. Then the Japanese concern SoftBank bought its assets for $32 billion, last year NVIDIA’s attempt to buy Arm failed, after which preparations for an IPO began, albeit already on the American stock exchange. The British authorities are still insisting on the placement of shares in London, but there is no need to talk about the implementation of such a plan so far.