Information about SoftBank’s readiness to list the assets of British processor architecture developer Arm later this year has long been and is now being discussed Bloomberg Citing its own sources, the company reports that the IPO is planned for September. At the time of the placement, Arm’s capitalization is expected to be between US$60 billion and US$70 billion.
According to the source, the active part of preparations for the IPO with a demonstration of the prospectus to investors will start in the first week of September, the actual placement of shares is planned for the second week of the month. Previously it was thought that the floor of Arm’s capitalization would be around US$30 billion, but now it is planned to raise it to US$60 billion given the general interest in artificial intelligence systems that will not be possible without fully developing the progressive processor architectures developed by Arm.
In fact, Arm’s management would see a capitalization ceiling at the $80 billion level, but the current state of the US stock market is not conducive to realizing such ambitions. In fact, after the IPO, SoftBank will be able to raise about $10 billion while retaining a significant portion of Arm’s stake. The company already submitted its application for an IPO on the American stock exchange in April of this year. SoftBank and Arm were reportedly in talks to attract so-called “anchor” investors, such as NVIDIA and Intel, whose participation in Arm’s stock offering could attract other participants in the stock market.
Keep in mind that Arm was already a public company until 2016, but by then its shares were traded in London and its assets were then bought by Japanese company SoftBank for $32 billion. NVIDIA’s attempt to acquire Arm was unsuccessful due to opposition from antitrust authorities, so SoftBank decided to raise funds for its assets by going public, but this time in the US.