Arm, a prominent name in the chip design world, has a projected market capitalization that may exceed $60 billion at the time of the IPO. This figure sets the stage for what could be the world’s biggest initial public offering of the year.
SoftBank, the current owner of Arm, plans to file an official application with the U.S. Securities and Exchange Commission later this month for the listing. Subsequent approval from Nasdaq will need to follow. Leading global chipmakers, such as Apple, Samsung Electronics, Nvidia, and Intel, are reportedly lined up to invest in Arm once the company hits the market.
In a strategic approach, Arm intends to engage these prominent chipmakers as medium- to long-term shareholders, selling them stakes of a few percent each. This arrangement is likely to give these investors a degree of influence over Arm’s management decisions.
The decision to go public comes after a significant hiccup in SoftBank’s plans. Initially, California-based Nvidia had aimed to purchase Arm, but regulatory challenges culminated in the deal being blocked by the Federal Trade Commission (FTC). In January 2022, Nvidia officially abandoned the purchase.
Since its inception in 1990, Arm has been at the forefront of semiconductor innovation, developing integrated circuit design data that serves as the essential “blueprint” for chip manufacturing. Arm’s influence extends across the industry, licensing its chip designs to over 500 companies, including Apple, with its architecture found in an astounding 95 percent of the world’s smartphones.
The collaboration between Apple and Arm is already well-established, as Arm’s hardware is the foundation for all of Apple’s custom silicon processors, such as the A15 in the iPhone 14 and the M2 in the MacBook Pro.
The forthcoming investment underscores the vital role Arm plays in modern technology and signifies a strong commitment from major industry players to remain aligned with the company’s growth and innovations.