SoftBank-backed Arm prices shares at $51 apiece ahead of IPO

SoftBank-backed Arm prices shares at $51 apiece ahead of IPO

  • SoftBank’s Arm, which is now looking at a valuation of more than $52 billion in its much-anticipated listing. It’s the so-called crown jewel of the tech conglomerate’s empire. It’s offering 95.5 million American depository shares for $47 to $51 a piece. Remember, SoftBank bought Arm for $32 billion in 2016. It’s still going to own over 90 percent of the company when all of this is said and done. All of this said, however, this IPO is a lot smaller than it had been planned before. So what they’re planning to raise here is as much as $4.87 billion. It could value the company at about $54.5 billion, as we talked about at the top end, before the discussion was to perhaps raise $8 to $10 billion. So now looking at closer to $5 billion indicates something about maybe the demand or lack thereof for those soft bank shares.

    Yeah, and it’s going to be an interesting roadshow too, which initiates, starts off today and we saw that release come across this morning. One of the huge things, as a reminder, you’ve got companies like AMD, Apple, Google or Alphabet, Intel, MediaTek, all of these companies, even Nvidia and Samsung, that are some of the kind of joint or indirect indicators of interest, at least in purchasing about $735 million worth of the American depository shares in this company. And so there’s been a ton of focus just around this IPO and whether or not it will actually kick off some of the other unicorn or decacorns that are wanting to, or at least kind of evaluating what the public markets or the reception into the public markets for some of these mega kind of unicorns or mythical creatures out there, however you want to look at them, whether or not they can make some type of positive foray into the market, especially given the last IPO wave that we saw in 2021, large majority or a certain consortium of those really were just the SPAC craze and then after that you had the SPACs really sputter after Thereafter and so now the environment’s not just only in the equity markets and the volatility that we’ve seen But also in just the amount of raise that’s actually going to come forward have largely been in question Which is why many of these companies have stayed on the sidelines.

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