SoftBank Subsidiary Arm IPO Attracts Major Tech Players Such as Samsung, Nvidia, Apple, Samsung and Intel

By: Asia Business Outlook Team | Wednesday, 09 August 2023

British chip design unit Arm, a subsidiary of SoftBank Group, is preparing to launch a historic Initial Public Offering (IPO) on the Nasdaq in September. The IPO is expected to raise market capitalization exceeding a staggering $60 billion, making it the largest IPO of the year. A report claims that Apple, Samsung, Intel and Nvidia will jump on board as investors once the company is listed.

The Nasdaq listing process is about to kick into gear, with SoftBank Group officially submitting its application to the U.S. Securities and Exchange Commission later this month. According to the report, Arm's IPO is tentatively scheduled for a mid-to-late-September, with the company actively gauging investor demand and hoping to further boost its corporate value. This move comes after Arm's valuation skyrocketed since SoftBank's $24 billion acquisition of the company in 2016, doubling its initial price tag.

SoftBank Group currently owns 75% of Arm, with the remaining 25% held by the SoftBank Vision Fund, a tech-focused investment unit. According to reports, the Vision Fund intends to sell 10% to 15% of its Arm shares on the open market.

It also claims that Arm has devised a strategy to engage major chipmakers such as Nvidia and Intel, as well as tech titans such as Apple and Samsung, as medium- to long-term shareholders, with plans to sell them fractional stakes in order to stabilise the stock price upon listing.