ARM’s IPO, is expected to unveil its filing as soon as Monday, giving the market a peek at the chip designer’s financial health. For those living under a rock, ARM Holdings IPO date is planned for September, and is on track to be the year’s largest and could be one of the biggest tech IPO of 2023 in listing ever on a U.S. exchange. As per report, Softbank’s ARM IPO valuation is aimed at US$60 billion (S$81 billion) to US$70 billion in an IPO raising US$8 billion to US$10 billion. ARM IPO share price will be disclosed in the second week of September. ARM on Monday publicly filed for an initial public offering (IPO) on the NASDAQ, under the ticker ARM. So should you invest in ARM IPO? ARM’s IPO debut will be a big deal for the market as it is an incredibly important force in the world of consumer electronics, designing the architecture of chips that are found in 99% of all smartphones.
If you want to invest how to buy ARM’s IPO? Buying into Softbank ARM’s IPOs is have a brokerage account or a broker who has access to the market that the ARM Holdings IPO is going to be listed on. You can typically buy shares once that market opens.
How to buy ARM’s IPO?
Many of the hot new IPOS are allocated to a brokerage firm’s best clients and are often unavailable to clients with lower portfolio balances. The typical investor is unable to access those hot IPOs. So the question is how to buy ARM’s IPO? Buying into Softbank ARM’s IPOs will be as straightforward as buying shares in already listed companies. ARM Holdings IPO date is yet not finalized but the company plans to start its roadshow the first week of September and ARM IPO share price the following week. The proposed terms of ARM IPO share price was not disclose in the document. As stated, ARM’s IPO valuation is expected at $60 billion to $70 billion. The target could be lower since SoftBank has decided to hold onto more of the company after buying Vision Fund’s stake in it.
ARM Holdings IPO the biggest
ARM won’t have to disclose the proposed size and price of the share sale until later filings with the U.S. SEC.
ARM IPO listing is set to be the biggest tech IPO of 2023 in the U.S. since electric-vehicle maker Rivian Automotive’s US$13.7 billion offering in November 2021.
SoftBank’s ARM IPO importance
ARM’s IPO debut could spur dozens of startups such as online grocery delivery company Instacart and marketing and data automation provider Klaviyo to follow through or further delay their own IPO plans.
The listing will be a welcome event for fee-starved investment bankers, whose commissions and bonuses have shrunk with the dearth of IPOs this year.
There are at least 28 banks signed onto ARM’s IPO.
ARM’s listing is taking some cues from previous high-profile technology companies. ARM won’t be using a “lead-left” bank and has decided to pay its top four underwriters equally. The ARM’s IPO will include several strategic investors, who will buy about US$100 million of common stock each, according to sources.
Diverse Perspectives on ARM’s Valuation
Considering the valuation’s scale, some experts are cautious, awaiting the definitive valuation.
“The valuation seems kind of high and people are awaiting what valuation comes in at,” according to Dylan Patel, chief analyst at semiconductor consulting firm Semi Analysis.
Why is ARM poised to have largest IPO this year is because its chips are used in just about every smartphone today, as per Fortune. The line-up hasn’t been set, but customers and partners of ARM such as Intel, Nvidia and Amazon have all been candidates to invest.
While an IPO investment would not come with a seat on board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire ARM later, as per sources.
“These guys want to be able to feed their technology needs back into ARM, so that their needs get put into ARM’s intellectual property,” said Jack Gold, founder of technology consultancy J. Gold Associates.
According to Robert R. Johnson, Professor, Heider College of Business, Creighton University, the good news for potential ARM investors is that if ARM’s IPO is hot it is likely to trade higher than its IPO share price when it resumes trading.
