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An exciting new IPO that could come to the New York Stock Exchange in September.

Monday Dayton
9. 8. 2023
3 min read

ARM Holdings, a UK-based computer technology company, wholly owned by Softbank Group, since 2016.

Founded in 1981 and headquartered in Tokyo,SoftBank = Japanese multinational holding company has quite an interesting track record. It has full ownership of ARM Holdings, Fortress Investment Group, Boston Dynamics and also owns stakes in Alibaba Group, Uber, Didi Chuxing among others.

And now to ARM, which is looking to list on the New York Stock Exchange in September and hopes to raise a record $10 billion. The company was founded in 1990 by Acorn Computers, Apple Computer and VLSI Technology to develop ARM's RISC processors first used in Acorn Archimedes computers and now mainly used in mobile phones and embedded systems.

It was at one time one of the most important players in the mobile phone processor field, as 98% of mobile phones sold in 2007 contained at least one ARM processor. The business is still continuing in its intent.

SoftBank, which bought the former blue-chip in 2016, hopes to raise as much as $10 billion in shares of the microchip designer after Arm goes public in September, a record amount for a British company.

Industry sources said SoftBank has approached a number of customers to gauge their interest in investing. Reuters first reported Amazon's interest , with all clients including Apple, Samsung and Google parent company Alphabet reportedly approached.

Amazon $AMZN-1.1% is thus considering becoming a major shareholder in ARM, which would only solidify the importance of semiconductor technology for the online retailer, whose fast-growing Internet infrastructure division, Amazon Web Services, has proven highly profitable. Until those largely relied on technology from rival Intel's Arm.

Michael Dimelow, a former Arm employee and investor in Bloc Ventures, said Amazon is "the largest user and wholesaler of computers on the planet, mostly Intel-based."

He said its data centres are currently "mostly Intel-based... so if they go to 50:50 Arm and Intel - then Arm wins "

He went on to say that the investment will allow Amazon to "win by making Arm more money", while "Arm will win by having Amazon as a key customer".

But to make things not so smooth, Tuesday ARM revealed that its revenue and profits fell ahead of its public listing amid a slowdown in the microchip sector. A supply glut after the pandemic caused a drop in demand for new semiconductors, hitting its sales. Revenue for the three months ended June fell 10.8 percent to $619 million, while falling into the red after posting a profit in the same period last year. Global shipments of semiconductors, including Arm technology, fell 6.4 percent for the quarter.


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