Arm is reportedly considering a U.S. listing in September

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on Aug 2, 2023
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  • 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.

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Arm Ltd. is reportedly considering a U.S. listing in September to capitalise on the rising interest in artificial intelligence.

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Arm is targeting up to $70 billion valuation

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Anonymous 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

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Note 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.

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