SoftBank’s IPO plans are definitive: Arm will be listed on the stock exchange. The Japanese tech giant has taken the first steps and values Arm at over €54 billion ($60 billion).
Bloomberg reports that SoftBank hired financial specialists from Goldman Sachs, JPMorgan Chase & Co and the Mizuho Financial Group. The financial specialists are most likely required to arrange a loan prior to the IPO process.
Higher market value than Nvidia deal
SoftBank is aiming for a value of no less than €54 billion ($60 billion). This is considerably higher than the amount expected from a deal with Nvidia ($40 billion), which was recently wiped off the table.
According to financial experts, the market value is due to a huge boost in Nvidia shares following the aborted acquisition. Nvidia would have paid a large portion of the acquisition value in shares. If the deal had gone through, Arm’s value would have risen to over 54 billion euros ($60 billion), experts said.
Arm’s definitive IPO value is subject to change depending on market conditions.
Initial public offering vital for Arm
For Arm, clarity on the future is vital. The chip technology specialist operates in a high-pressure market. Recently, Arm announced a reorganization leading to major job losses.
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