Arm is reportedly considering a U.S. listing in September
- Arm wants to raise up to $10 billion via an Initial Public Offering (IPO).
- It had recently reported a record annual revenue of $2.80 billion.
- Arm's listing could be the largest tech IPO since Meta Platforms in 2012.
Arm Ltd. is reportedly considering a U.S. listing in September to capitalise on the rising interest in artificial intelligence.
Arm is targeting up to $70 billion valuation
Copy link to sectionAnonymous sources told Bloomberg today that the chip giant wants to raise up to $10 billion via an Initial Public Offering (IPO).
It plans on playing the AI card and target valuation of a whopping $60 billion to $70 billion, they added. According to Bob O’Donnel – the President of TECHnalysis Research:
Arm has had a hugely important but behind-the-scenes and not-very-well-understood role for a very long time. There’s this raised awareness now of what Arm does and the role that it plays.
If the Softbank-backed company succeeds in commanding that valuation, it’ll be the largest tech IPO since Meta Platforms in 2012.
Arm recently reported record annual revenue
Copy link to sectionNote that Amazon Web Services has already started using Arm-based chips that it finds more efficient, as per the Bloomberg report on Wednesday.
The stock market news arrives about a month after Nvidia was reported in talks with SoftBank to become an anchor investor in Arm as it debuts on Nasdaq – a year after it had to terminate plans of all-out acquiring the British firm due to regulatory challenges.
In May, Arm Ltd. said its annual revenue went up 5.7% to a record $2.8 billion. It’s recent decision to not list in London had raised questions on the United Kingdom as an IPO destination. At the time, Hussein Kanji of Hoxton Ventures had told CNBC:
It’s not the exchange, it’s the people who trade on the exchange. I think they’re looking for dividend-yielding stocks, not looking for high-growth stocks.
