Initial public offerings or IPOs are known as a great way for investors to make a big profit in a relatively short time. On average, they can bring investors 40% returns in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to gain exposure to the open market, help the company grow by attracting more capital and improve liquidity. If you’re into tech and aware of the company’s firm position in the chip industry you may be wondering, “is Arm publicly traded?” or “when is Arm going public?”. Read on to find out about Arm stock IPO and all the important information about Arm IPO 2022.
Arm Ltd. is a British company that designs processors and software. The company’s main business is designing ARM processors—a kind used in smartphones, tablets and other mobile devices and peripherals. The company was founded in 1990 and is headquartered in Cambridge, England.
The ARM architecture provides low electric power consumption, which makes it very suitable in portable devices. ARM processors are used as the main CPU in most mobile devices, including those made by Apple. In fact, most things that contain electronics, from chip-and-pin credit cards to vending machines, digital cameras, TVs and cars, need processing power and use some kind of ARM processor. That’s why the company has sold over 50 billion chips.
This architecture is commonly used in supercomputers, including the world’s fastest Japanese supercomputer Fugaku.
Arm was established as Advanced RISC Machines Ltd in 1990 as a joint venture between Acorn Computers, Apple and VLSI Technology. The company’s big break came in 1993 when they partnered with Texas Instruments. This resulted in a partnership with Nokia, and Arm designed a custom chip that was used in the Nokia 6110. The Arm7 became an important design for mobile devices that was used in over 10 billion chips.
Arm’s business comes from licensing its designs through intellectual property deals. The company does not manufacture its chips unlike many other major companies.
Arm was bought by the Japanese company SoftBank Group. In 2020, Nvidia announced its plans to purchase the company from SoftBank for $40 billion. However, this deal fell through for several reasons. These included security concerns in the UK, issues with competition, as chips by companies like Google, Microsoft and Qualcomm rely heavily on licenses from Arm, as well as opposition from Arm’s subsidiary in China. When the Nvidia deal was called off at the beginning of 2022, SoftBank decided to launch an IPO for Arm.
Read on to find out about Arm IPO date and price and other key info.
Arm Public Listing Key Data and IPO Date
Arm IPO Date: before March 31, 2023
IPO stock price: N/A
Valuation at IPO: $40-80 billion (estimated)
Market cap: N/A
CEO: Rene Haas
Category: Semiconductor stocks
Listing method: TBA
This is not the first time Arm is going public in its lengthy history. The company was listed on the London Stock exchange and Nasdaq in 1998 and remained a publicly traded company for 18 years before being bought out by SoftBank in 2016.
There is currently no information whether the company will go public directly or through a special acquisition company (SPAC). In recent years, SPACs have been a popular way for startups to go public. These are blank-check companies created specifically to help private companies go public. But in this case it’s likely that with SoftBank’s support Arm will launch as a traditional IPO.
According to SoftBank’s CEO Masayoshi Son, it’s likely that Arm will launch its IPO on Nasdaq. It’s also possible that SoftBank will go for a dual listing on Nasdaq and the London Stock Exchange, just like Arm Ltd did the first time round in 1998.
Since the Nvidia deal was called off only recently, we don’t know much detail regarding the IPO process. All we know is that SoftBank aims to launch the Arm IPO before the end of the 2023 fiscal year, i.e. before March 31, 2023. Other details like the starting stock price, the stock symbol and valuation figures are yet to be disclosed, but the company’s valuation is likely to be less than the $80 billion offered by Nvidia.
Arm’s recently appointed CEO Rene Haas, who likely owns a stake in SoftBank, has been with the company since 2013. It’s also very likely his net worth will multiply after the IPO.
So What About Investing Now?
Arm stock is not yet available on any of the exchanges, so the only way to invest in the semiconductor company is by buying shares of its holding company SoftBank, which is counterintuitive since an Arm IPO is coming soon.
Knowing about an IPO in advance gives investors time to learn as much detail as they can about the business and make a decision whether to buy or not before their IPO date. Also, the Arm IPO price will be determined as late as one day before the IPO itself.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
When is the Arm IPO date?
The Arm stock IPO date is scheduled before the end of the 2023 fiscal year ending March 31, 2023. So hopefully some time before that.
Is Arm a public company?
Not yet, although Arm Ltd. was a public company from 1998 to 2016, when it was acquired by SoftBank. When it launches its IPO, it will become a public company again.