Arm’s IPO delayed until late next year amid deteriorating market

Arm’s IPO delayed until late next year amid deteriorating market

The IPO of UK-based chip manufacturer Arm is expected to be postponed until next year. The decision comes amid growing concerns of deteriorating economic circumstances preventing investors from buying into the company.

Following the termination of Nvidia’s acquisition of Arm, the organization was slated to be listed on the public market this fiscal year. That time frame now seems to have been discarded.

Over the weekend, various UK media reported that Arm contacted stockholders to inform them that the IPO will not take place until 2023. In addition, there’s some conjecture that the IPO may not materialize at all.

Arm refutes concerns

SoftBank, the owner of Arm, has previously said that it planned to list the company during the fiscal year ending March 31, 2023.

Arm told The Register that the company’s IPO is likely to be delayed, adding that the process is still ongoing. SoftBank was not immediately available for comment.

Given the status of the financial markets, Arm is unlikely to list in Q1 2023, a spokesperson said. Arm claims its IPO preparations are in an advanced stage. The organization said it’s completely committed to a 2023 offering.

IPO doubts

However, in SoftBank’s recent Q2 earnings report, CEO Masayoshi Son stated that he was committed to expanding Arm as a business over the next few years, raising the possibility that the IPO may be delayed further or canceled entirely.

SoftBank previously indicated it intended to retain a controlling stake following the IPO. The latter may be why SoftBank initially proposed a $60 billion value for Arm’s listing, way up from the $40 billion to $50 billion range currently mentioned in various media reports.