A week later, Arm’s public listing on the US stock exchange Nasdaq takes place, the parameters of which have only recently been published, and it is now clear that the Japanese group SoftBank, which owns Arm’s assets, will have to back down from its previous ambitions. According to the results of the event, according to the documents currently available, the latter will receive no more than $ 4.87 billion.
Agency Bloomberg systematized all available data on this topic. It turns out that SoftBank plans to sell 95.5 million ARM shares in depositary receipts next week at a price of $47 to $51 a share. Theoretically, the capitalization of the company can be estimated at 54.5 billion US dollars. Subscribers also have the option to purchase an additional 7 million shares. After the IPO, SoftBank Corporation retains control of 90% of Arm’s shares.
If we take into account that at least $100 million has to be paid in the form of commission to 28 banks overseeing the IPO, then taking into account all the costs involved, SoftBank will receive no more than $4.87 billion from this event. Initially, the company expected the amount to double, but at the same time the possibility of selling a larger stake in Arm was considered, so the decrease in the amount is not entirely due to a reduction in capitalization. Even at those levels, the forthcoming IPO this year will be the largest in the global stock market.
Arm’s founding father, Apple, has extended its licensing deal beyond 2040, data released this week shows. Apple will also be one of about 10 “anchor” investors willing to buy back Arm stock for a total of $735 million as part of the IPO. They are likely to be joined by Samsung, AMD, NVIDIA, Alphabet (Google), Intel and MediaTek, TSMC, Synopsys and Cadence. Participation of all investors in the purchase of Arm shares is not guaranteed, but executives from NVIDIA and MediaTek participated in a video prepared for the release of Arm shares on the US stock exchange. NVIDIA founder Jensen Huang expressed his admiration for Arm and the platforms he has developed, as well as for the leadership of the UK holding company. Recall that NVIDIA’s attempt to buy Arm last year was unsuccessful due to opposition from antitrust authorities, prompting SoftBank to begin preparations for the company’s IPO.
According to analysts at Third Bridge, Arm’s cap estimate suffered from high exposure to the smartphone market and the Chinese market as things are currently not going well either way. Experts predict that Arm’s sales may grow 5-10% annually for the next five years, after which it will decline from its peak.