CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Arm IPO: SoftBank’s UK chip designer listing timing and details in full

By Jenny McCall

09:49, 11 August 2022

An image of SoftBank Group CEO Masayoshi Son speaking at a press conference
Softbank (SFTBY) announced in February that it plans to list Arm Ltd - Photo: Getty Images.

Japanese conglomerate and tech investing company Softbank Group (SFTBY) announced in February that it plans to list the semiconductor company it owns, Arm Ltd. Reports claim that SoftBank (SFTBY) is seeking a listing for Arm because the private investors within the company’s venture capital fund, Vision Fund,  own 25% of Arm and are looking to cash in through an initial public offering (IPO).

SoftBank CEO Masayoshi Son indicated that the initial public offering (IPO) would take place in the US, and it would most likely be listed on the Nasdaq (US100), which is also the home for other tech stocks, such as Apple (AAPL), Microsoft (MSFT) and Amazon (AMZN). 

What is your sentiment on 9984?

9383.3
Bullish
or
Bearish
Vote to see Traders sentiment!

Softbank Group (SFTBY) share price chart

London or New York? 

However, according to a report in the Financial Times, the UK government is discussing whether Arm should be listed in London.

As a result, SoftBank (SFTBY) said it was considering listing some of its stake in the chipmaker on the London Stock Exchange (LSE).

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown wrote in a note: “The British company is set to go public once again, but if, as rumoured, Arm reaches for a listing in New York, it may be seen as a vote of no-confidence for London, where newly listed ‘tech’ companies have had a distinctly rocky ride over the past year.”

Streeter stresses that London has been working hard to position itself as a Fintech hub, as the UK continues to grapple with its post-Brexit status, in an era when it has struggled to attract fast-growing companies to launch an IPO. The government has begun to make changes to try and make the city more attractive to founder-led firms, but it seems these alone aren’t cutting it, with other disappointments popping up.

With that said, reports in July claim that the Arm IPO, which is not expected to take place until 2023, is now on hold, as SoftBank grapple with the political uncertainty in the UK caused by the resignation of Prime Minister Boris Johnson.

The halt on the Arm IPO follows the setback in February, which saw technology group, NVIDIA (NVDA) announce the termination of its $40bn (£32bn) acquisition of Arm LTD.

NVIDIA (NVDA) share price chart

A NVIDIA (NVDAstatement read: “Arm has a bright future, and we’ll continue to support them as a proud licensee for decades to come,” said Jensen Huang, founder and chief executive officer of NVIDIA. “Arm is at the center of the important dynamics in computing.”

AMD

129.90 Price
+0.160% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.24

COIN

315.58 Price
-0.060% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.83

TSLA

421.23 Price
-0.650% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.25

NVDA

137.81 Price
-0.780% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.11

‘’The collapse of the blockbuster Arm deal was a bitter blow of disappointment for SoftBank (SFTBY). If it had sold Arm as rumoured, it would have marked a reversal in the dismal fortunes elsewhere in the portfolio where valuations have been hurt hard,” Streeter said.

“It had the rare hallmarks of a SoftBank investment turning to gold, but instead, Arm will head back for listing in financial markets where tech stocks have been seriously tarnished of late, and such a bumper valuation is likely to be far from reach. Given the number of obstacles strewn in the path of SoftBank in its attempts to strike the deal, news that it has called it off comes as little surprise.”

Was Arm ever a listed company?

Yes, Arm was previously a dual-listed company in London and New York, but it was purchased by SoftBank (SFTBY) in 2016 and was subsequently delisted.

When will Arm be listed again?

SoftBank (SFTBY) boss, Son has said that Arm would become a publicly traded company by the end of its current financial year, which is to the end of March 2023

What does Arm do?

ARM Holdings has often been described as the UK's leading technology company. It is an intellectual property (IP) provider, responsible for designing the architecture used in chips. Despite it not being a household name, its technology is a necessity in many products, such as TVs, smart cars, drones, and mobile phones.

What valuation has Arm been given?

Reports in Bloomberg claim that SoftBank (SFTBY) is seeking a valuation of at least $60bn.

Is NVIDIA (NVDA) still buying Arm?

No. The deal was terminated in June following concerns from global regulators, such as the UK’s Competition and Markets Authority (CMA), as well as the European Commission Vice President Margrethe Vestager, who argued that the acquisition of Aem by NVIDIA (NVDA) could lead to restricted access to ARM’s IP.

The US Federal Trade Commission (FTC), also waded in on the acquisition and vowed to stop the merger in order to prevent a chip conglomerate from stifling the innovation pipeline.

Markets in this article

AMZN
Amazon.com Inc (Extended Hours)
229.55 USD
-0.6 -0.260%
AAPL
Apple Inc (Extended Hours)
247.00 USD
0.22 +0.090%
MSFT
Microsoft Corp (Extended Hours)
448.25 USD
-0.93 -0.210%
9984
SoftBank Group Corp.
9383.3 USD
219.5 +2.400%
NVDA
NVIDIA Corp (Extended Hours)
137.81 USD
-1.09 -0.780%

Related topics

Rate this article

Related reading

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading