Semiconductor giant ARM Holdings Inc. is on the verge of making history with the biggest tech IPO of 2023. As investors eagerly await the launch of Softbank’s ARM IPO, it is a desideratum to understand ARM’s financials and the events that have led to this momentous occasion of the release of ARM shares. With the IPO market running rife with details of ARM stocks and how to buy ARM IPO, Industry Leaders delves into a meticulous roundup with a timeline of ARM IPO.
ARM Holdings has established itself as a leading player in the semiconductor space. The company specializes in designing ARM-based processors, which are renowned for their efficiency, innovation, and cost-effectiveness. Unlike traditional processors, ARM-based processors are integrated components of a computer’s build, resulting in a more streamlined and compact design.
ARM processors have become ubiquitous in modern mobile devices, powering smartphones, tablets, and other consumer electronics. Major tech companies such as Qualcomm, Samsung, and Apple rely on ARM’s processors to deliver exceptional performance and power efficiency to their products.
Go through the timeline to check if you have missed any important changes and decide if you should buy in the ARM IPO or sit it out.
ARM Holdings is set to go public with its IPO in 2023. In this article, we’ll take a closer look at the company’s business, financials, and prospects. Don’t make a move on the ARM IPO without reading this comprehensive analysis.
Jan 02, 2023
The UK is ready to give an arm and a leg to have the chipmaker call the LSE home.
The UK is hopeful that its reforms will attract other tech stocks.
ARM won’t have to disclose the proposed size and price of the share sale until later filings with the U.S. SEC.
The Road to ARM’s IPO: A Detailed Timeline
To truly appreciate the significance of SoftBank’s ARM IPO, let’s take a comprehensive look at the timeline of major milestones that have paved the way for ARM’s IPO.
1998 – 2016
ARM Holdings began publicly trading shares in 1998 under the ticker ARMH. After SoftBank purchased the company for $32 billion, ARM went radio silent in the stock market, dovetailing as a privately owned company.
2017
In March and July, ARM Holdings introduced two major initiatives named DynamIQ architecture and Project Trillium, fixating on advancing AI and machine learning (ML) technologies for mobile phones. In September, Apple announced its partnership with ARM processors, unveiling the new iPhone X geared with an ARM-based A11 Bionic chip.
2018
ARM introduced 2 processors, including the Cortex-A76AE, designed especially for safety-critical applications such as autonomous vehicles.
2019
By June, ARM had launched 3 new processors, targeting next-generation devices, IoT, and embedded applications for enhanced security, performance, and efficiency.
At the end of July, SoftBank Group was reportedly contemplating ARM IPO, in a bid to raise funds to reduce debt. However, no concrete plans were announced.
2020
In April, reports surfaced that either an ARM IPO could take place or a potential sale. SoftBank Group confirmed its intentions to pursue divesting ARM shares through an IPO in September, as a part of its broader strategy to magnify the value of ARM Holdings.
On 21st September, Nvidia Corporation announced its intention to acquire ARM Holdings for $40 billion.
“Uniting Nvidia’s AI computing capabilities with the wide ecosystem of ARM’s CPU, we can advance computing from the cloud, smartphones, PCs, self-driving cars, and robotics, to edge IoT, and expand AI computing to every corner of the globe”.
– Jensen Huang, Nvidia CEO
The takeover would take up to 18 months to complete. Anticipating opposition to the ARM-NVDA deal, Huang tried to woo the UK government by promising to build a supercomputer and AI research center in Britain.
2021
In January, the UK’s CMA (Competition Market Authority) scrutinized the proposed takeover with various countries weighing in on its impact on the global chip market. The CMA sought whether ARM would have an incentive to withdraw, raise prices, or reduce the quality of its IP licensing services to Nvidia’s rivals.
“The combination of Arm and Nvidia is a better outcome than an IPO. The level of investment that will be needed to lead in AI will be unprecedented.”
– Simon Segars, ARM CEO
In February, tech giants including Google, Microsoft, and Qualcomm raised objections to the US Federal Trade Commission (FTC) claiming that the Nvidia-ARM acquisition would harm competition in the semiconductor industry. The FTC opened an investigation.
In June, Nvidia requested Chinese antitrust authorities to give a green light to the acquisition (ARM’s largest market is China), but leading Chinese manufacturers opposed the takeover citing the increased control that the US would have over the ARM designs.
SoftBank Group announced it was putting a pause on the plans for the ARM IPO in September.
“We contemplated an IPO but determined that the pressure to deliver short-term revenue growth and profitability would suffocate our ability to invest, expand, move fast, and innovate.”
By October, the EU (European Commission) also announced its investigation into the NVIDIA-ARM deal, pointing to harming competition in the semiconductor industry.
In December, the US FTC announced that it was suing to block the Nvidia-ARM takeover.
2022
In February, Nvidia and ARM Holdings conceded defeat in completing the takeover, but not without hitting back at critics claiming to tinker with the neutrality.
“Trying to foreclose ARM licensees would immediately reduce ARM’s revenue, which damages Nvidia’s investment. No rational publicly traded entity embraces such a self-defeating strategy.”
SoftBank revealed its plans to relist ARM in the public market by the year ending in March 2023. Following the collapse of the deal, Nvidia paid $1.25 billion to SoftBank, as a non-refundable deposit. The collapse triggered a shakedown at ARM and ended with Rene Haas taking over as CEO from Simon Segars, ending his 30-year association with ARM.
2023
The tech industry is non-existent in the IPO market. In August, SoftBank’s ARM IPO was filed with the SEC, initiating the IPO process with the F-1. While the ARM Holdings IPO date is not announced, analysts believe early September is the right window for the biggest tech IPO of 2023. If you’re considering how to buy ARM IPO, it is advisable to go through all the implications and decide if investing in ARM financials is a good idea or not.
The ARM IPO will be listed under the ticker symbol ARM on NASDAQ. In the past three years, ARM Holdings has achieved a commendable 16.2 percent CAGR.
Unlike other AI businesses, ARM financials don’t rely on chip-making, but rather designing the technology for companies interlinked with AI tech, such as Nvidia and Apple.
While ARM’s IPO presents an exciting opportunity, it is essential to exercise caution and conduct thorough due diligence before making any investment decisions. There are quite some risks in SoftBank’s ARM IPO, and one crucial thing to note is that SoftBank will not divest itself of the company, meaning that ARM’s majority voting power will lie with the company itself.
However, ARM Holdings projected 2023 annual figures appear stable and replicable. The market environment in which these projections were formulated continues to persist.
Overall, ARM’s financial numbers reinforce the company’s compelling narrative and its position as a dominant player in the semiconductor industry.
