Banks expect Arm’s IPO to raise between 28 billion euros and 66 billion euros ($30 billion and $70 billion).
Japanese parent company Softbank made the decision on Arm in the middle of last year. The IPO is scheduled to take place during this year.
Meanwhile, bankers are busy valuing the chip technology specialist and are now coming up with cautious predictions about the possible yield. Bankers would value the proceeds in an IPO at between $30 billion and $70 billion, Bloomberg reports based on sources.
Exactly what the value will be is still unknown. Right now, the actual value of the IPO would be around $50 billion. Softbank itself would seek a yield of about $60 billion, Bloomberg sources said. Arm’s current value would now be at $39 billion.
The exact value is hard to predict, as trading in shares of chip makers is currently very much in flux. This is due to the poor results that chip manufacturers are showing due to difficult economic conditions. This is despite the fact that there is still a shortage of chips and thus demand is high. In any case, the chip technology maker’s IPO is to be the biggest ever in the chip sector.
According to Bloomberg, Softbank is currently in the process of selecting the banks to accompany the IPO. Possible candidates that will help with this include Goldman Sachs, JPMorgan Chase & Co and Barclays. The IPO should take place on the Nasdaq in New York.
Also read: Arm CEO talks diversification in datacenters and AI ahead of 2023 IPO