According to a Bloomberg report, quoting "people familiar with the situation" Arm's upcoming IPO has garnered impressive backing from industry stalwarts, such as Apple, Nvidia, Intel, and Samsung as Softbank Group is preparing for a public offering. The anticipated IPO, valued between $60 billion and $70 billion, promises significant shifts in the tech industry landscape as it will show whether investors are ready to invest in new chip stocks. As the news comes from an unofficial source, take it with a pinch of salt.
SoftBank has seemingly secured endorsements from major technology firms that happen to be major Arm licensees, like Apple, AMD, Cadence, Intel, Google, Nvidia, Samsung, and Synopsys for Arm's public offering. These industry giants could infuse between $25 million and $100 million each, indicating strong faith in the chip company's potential.
Originally, SoftBank intended to garner between $8 billion to $10 billion through the IPO. However, after a strategic decision to retain a more significant share of Arm, this target was recalibrated to a fundraising goal of $5 billion to $7 billion. SoftBank's acquisition of the Vision Fund's stake in Arm solidified the company's valuation at a commendable $64 billion.
The success of Arm's public market debut is of paramount importance to SoftBank and its CEO, Masayoshi Son. After the Vision Fund's hefty loss of $30 billion in the previous fiscal year, a flourishing IPO could be a much-needed win for the conglomerate. Moreover, a successful listing for Arm might act as a catalyst, propelling other firms, including Instacart, Klaviyo, and Birkenstock, to consider their public offerings.
Masayoshi Son is reportedly keen on maintaining significant control over Arm, not wishing to release more than 10% of the company during this initial phase. This aligns with SoftBank's recent decision to buy the Vision Fund's stake in Arm, a move underscoring the conglomerate's belief in Arm's long-term viability.
In preparation for the impending IPO, Arm has enlisted the services of global financial behemoths. Leading the charge on this offering are Barclays, Goldman Sachs Group, JPMorgan Chase & Co, and Mizuho Financial Group, a testament to Arm's global appeal and the potential windfall banks anticipate from the deal.