Arm Group Sets Eyes On IPO Valuation Of $52 Billion
Arm group from Softbank is reportedly eyeing an IPO valuation higher than $52 billion. If this turns out to be true, it will become one of the biggest IPOs in the USA this year.
The marketing for floating the Arm group into the US stock markets has already started which means we will not have to wait for much longer.
IPO Share's Price Set At $47 - $51
In total, Softbank plans to sell 95.5 mn shares at a price of $47 - $51 / share. This means the company might manage to raise close to $4.87 billion from its initial public offering.
Earlier, the company behind the Arm groups had set a valuation of $64 billion. If we look at that and the recent valuation of $52 billion, it becomes clear that the company has taken a step back.
However, some experts believe that selling the Arm division to Nvidia for around $40 billion would be a better idea than the IPO. Just a year earlier, the company dismissed that idea after receiving opposition from the regulatory authorities.
According to a famous British fund manager, the valuation of Softbank's Arm division might change over time as it is fixed in stone. He also added that it will be important to see how Softbank manages its relationship with the Chinese side and how the tech war between the USA and China will span out.
Once the IPO officially closes, Softbank will still retain close to a 90.6% stake in the Arms division. In fact, the company has already made it clear that it will not receive any money from the IPO.
If we look at the Arms division clientele, it includes big names such as Alphabet, Apple, AMD, Samsung, and even Intel. That's why the company also made an announcement that many of its investors have also shown interest in owning a stake in the company.
According to experts, the listing of the Arm in the stock markets will also help other startups to go towards the route of going public. As a result, we might see a turn up of investment in the technology companies in 2023 and 2024.