SoftBank’s Arm Files for IPO That Could Be 2023’s Biggest

Arm Holdings, SoftBank's semiconductor unit, has filed for the largest US IPO of the year, providing a boost to struggling equities markets.

While the exact terms weren't disclosed, Arm aims to be valued between $60 billion to $70 billion in the listing, with the IPO set to take place after a roadshow in September.

Initially targeting $8 billion to $10 billion in funds raised, this amount may decrease as SoftBank retains more of the company.

The IPO is led by major banks including Barclays, Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group.

It's poised to be the largest US listing since Rivian's $13.7 billion IPO in 2021 and could rival tech giants like Alibaba and Meta's historic offerings.

A successful Arm IPO would be a welcome relief for SoftBank after its Vision Fund's significant losses.

It could also encourage other startups like Instacart and Klaviyo to proceed with their own IPO plans.

Arm's target valuation reflects a growing interest in AI-related technology, particularly AI chips and generative AI.

The UK-based company's technology, known for its power efficiency, is widely used in smartphones, and it now seeks to expand into data centers for cloud computing and AI applications, where Arm-based chips are considered efficient and cost-effective.

SoftBank will retain control of Arm even after the IPO, having acquired the Vision Fund's stake for $16.1 billion.

Arm reported a 1% revenue decline in its last fiscal year, with sales at $2.68 billion for the year ending March 31.

Arm plans to trade on the Nasdaq Global Select Market under the symbol ARM.

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