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Arm has filed for an IPO on Nasdaq


August, 22 2023
watermark Economic news

The company-developer of Arm chips, owned by Softbank, announced its intention to hold a long-awaited initial public offering (IPO) on Nasdaq. Despite the lack of clarifications regarding the value of the shares, the market took this news with optimism.


Arm, based in Cambridge, UK, is preparing for one of the largest IPOs in the US in the last two years. This step is part of Japan's Softbank strategy to realize the company's potential amid growing interest in generative artificial intelligence. Arm processors are used by many large technology companies, including Apple and Nvidia, which brings the company royalties from each sale.


In its statement, Arm emphasizes the importance of its technology for the global market, noting that its products are used by about 70% of the world's population. At the end of last year, the share of chips with Arm technology was about 49% in the market, estimated at $ 202.5 billion.


Softbank recently acquired an additional 25% stake in Arm from its Saudi-backed investment fund for $64 billion. 


Based on this estimate, Arm could become one of the largest companies by IPO value in the US, second only to electric car manufacturer Rivian, which held an IPO in 2021.  However, the company emphasizes that this indicator should not be considered as a direct indication of the future value of shares at the IPO.


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