Strategic investors will each invest no more than 100 million

Strategic investors will each invest no more than $100 million in Arm’s capital

According to informed sources, SoftBank is not giving up on attracting the so-called “anchor investors” among the major customers of this processor architecture developer for the upcoming listing of ARM shares. Arm capitalization during the events is estimated at a more modest $50-55 billion compared to initial expectations, and each of the strategic investors will invest no more than $100 million.

    Image source: Arm

Image source: Arm

It should be noted that yesterday information on Arm’s capitalization range was provided simultaneously by several independent sources, including The Wall Street Journal And Reuters. Considering that SoftBank will now list no more than 10% of the shares it owns since 2016, a capitalization estimate of $50-55 billion will allow the Japanese company to go no more than 5, Raise 5 billion US dollars previously 8 to 10 billion US dollars were planned. Even the previously discussed SoftBank deal to buy a 25 percent stake in Arm from the Vision Fund for $16 billion valued the UK developer’s capitalization at $64 billion. It turns out that at the time of the IPO, Arm’s Japanese owners approached it with more pessimistic sentiment.

This does not prevent it from attracting strategic investors from among Arm’s major clients. As previously reported, this will allow SoftBank to increase interest in Arm stock from small independent investors on the stock exchange. For Arm’s own IPO clients, buying the company’s shares will be an opportunity to formally strengthen ties with the company and make it more difficult for a competitor to potentially acquire a larger stake in the future. Under the terms of the agreement, none of Arm’s “anchor investors” will have the right to nominate their nominee for a directorship or to influence the company’s strategy in any way as a result of participating in the IPO.

So far, Apple, NVIDIA, Alphabet (Google), AMD, Intel, Samsung Electronics, Cadence and Synopsys have agreed to participate in the IPO among ARM customers, Reuters reports. The latter two are Arm’s partners in providing tools for the development of processors, so not only those who intend to design and manufacture the same processors can invest in Arm. As noted, each of the “anchor investors” can invest anywhere from $25 million to $100 million in Arm’s capital. It was previously reported that this group of investors would be offered to buy up to 10% of Arm’s shares, which will be raised through the IPO. In fact, the current capitalization estimate is around $500 million to be spread across fewer than 10 companies.

It is noted that Amazon has declined to participate in the IPO. None of the representatives of the listed companies have commented on this information so far.

About the author

Dylan Harris

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

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