ARM IPO Summary

ARM IPO Summary

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Intro: Arm Holdings, the UK’s largest chip designer with a valuation of around $60 billion, has grown rapidly since being acquired by SoftBank for $32 billion in 2016. Arm provides chips to companies such as Intel, Apple, and Samsung and is seeking to become a publicly traded company.

Arm’s History: Arm was founded in the UK by Robin Saxby and Mike Muller and is headquartered in Cambridge. The company was listed on the London Stock Exchange (LSE) before being acquired by SoftBank, who took it private due to the uncertainty created by Brexit. SoftBank originally intended to list Arm on the NASDAQ in New York due to the belief that the US would offer attractive valuations and a deep investor base.

UK’s Approach: Prime Minister Rishi Sunak has revived efforts to lobby for Arm to list on the LSE and NASDAQ, holding discussions with the company’s management and legal team. Sunak is seeking a dual listing in London as investor confidence is at an all-time low due to high inflation and rising living costs. However, the pressure for Arm to go public has eased, and they plan to do so later this year.

Conclusion: Whether Rishi Sunak’s lobbying efforts are successful remains to be seen, but analysts are skeptical given the current economic climate in the UK where inflation is high and LSE trading volumes are low. Nevertheless, the UK is optimistic, and Sunak hopes to boost investor confidence in the market as a way of steering the country out of the recession.

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I write about stocks, investing, and banking. I am a student at Holland Park School.