British chip marker ARM is gearing up for an Initial Public Offering (IPO) as its parent company SoftBank plans to raise money from the public after the failed acquisition of Nvidia. In 2020, Nvidia announced that the company would acquire ARM for $40 Billion. However, the deal quickly caught the eyes of the regulators, who noted that the agreement would result in a monopoly in the industry. The value was closed last year as regulators stepped in to prevent the sale.
According to a report from Nikkei Asia, Apple and Samsung are planning to buy shares of the ARM company when it officially opens the IPO. According to previous reports, ARM is targeting September for the IPO and has already filed papers to register for the IPO.
ARM to Welcome Big Chipmakers as Long-Term Shareholders
ARM, on the other hand, plans to welcome significant chip markers as long-term shareholders in the company post the IPO. Nikkei Asia noted that ARM intends to offer “a few percent each” to multiple companies. This would give companies sway over ARM’s management and future manufacturing. This aligns with the earlier reports, which noted that ARM is in talks with ten companies, including Microsoft, Alphabet, Apple and others, to be the anchor investors.
SoftBank Aims to Raise $8-$10 Billion in IPO
According to Reuters, SoftBank aims to raise between $8 Billion and $10 Billion during the IPO. The Japanese investment conglomerate held its quarterly earnings call earlier today. Still, it did not disclose details about the ARM deal, with the company saying that the preparations were going “very smoothly.”