British chip marker ARM has been gearing up for an Initial Public Offering (IPO) as its parent company SoftBank plan to raise money from the public after the failed acquisition to Nvidia. In 2020, Nvidia had announced that the company would be acquiring ARM for $40 Billion. However, the deal quickly caught the eyes of the regulators who noted that the deal will result in a monopoly in the industry. The deal was subsequently called off last year as regulators stepped in to prevent the sale.
Now, according to a report from Nikkei Asia, Apple and Samsung are planning to buy shares of the ARM company when it officially opens the IPO. According to previous reports, ARM is targeting September for the IPO and has already filed papers to register for the IPO.
Nikkei Asia noted the following in its report regarding the upcoming IPO:
SoftBank will officially apply to the U.S. Securities and Exchange Commission for the listing later this month. Then it must obtain approval from Nasdaq. Leading global chipmakers, including Apple, Samsung Electronics, Nvidia and Intel, will invest in Arm as soon as the company is listed on the market.
ARM, on the other hand, plans to welcome big chip markers as long term shareholders in the company post the IPO. Nikkei Asia noted that ARM plans to offer "a few percent each" to multiple companies. This would give companies sway over ARM's management and future manufacturing. This is in line with the earlier reports which noted that ARM is in talks with ten companies, including Microsoft, Alphabet, Apple and others to be the anchor investors.
According to Reuters, SoftBank is aiming to raise between $8 Billion and $10 Billion during the IPO. The Japanese investment conglomerate held its quarterly earnings call earlier today but did not disclose details about the ARM deal, with the company saying that the preparations were going "very smoothly".
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