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Arm IPO: Everything You Need to Know
ARM is gearing up for a staggering $52 billion IPO, attracting tech giants such as Apple and Nvidia. Dive into the details of one of the 2023 most anticipated US stock launch.
Table of Contents
What is ARM?
Arm is a British semiconductor and software design company that is best known for its chip designs. Arms designs are used in a wide range of devices, including smartphones, tablets, laptops, servers, and IoT devices. The companys technology is used by over 1,000 licensees, including Apple, Qualcomm, and Samsung.
Arms chip designs are based on a RISC (reduced instruction set computing) architecture. RISC architectures are simpler and more efficient than traditional CISC (complex instruction set computing) architectures. This makes Arms designs ideal for mobile devices, which need to be energy-efficient and have a small footprint.
Arms business model is based on licensing its chip designs to other companies. Arm does not manufacture its own chips. Instead, it licenses its designs to chipmakers, such as TSMC and Samsung. These chipmakers then manufacture the chips and sell them to device makers, such as Apple and Samsung.
The companys chip designs are used in over 95% of all smartphones sold worldwide. Arms revenue has grown rapidly in recent years, and the company is now valued at around $50 billion.
ARM Company Stats
| Name | Arm Holdings plc |
|---|---|
| Headquarters | United Kingdom (UK) |
| Industry | Semiconductors |
| Founded | 27th November 1990 |
| Parent Company | SoftBank Group |
| Total Employees | 5,700 (2023) |
Source: Wikipedia
Who are ARMs customers?
As per their F-1 filing, Arms customers include some of the biggest tech companies in the world, including Apple, Qualcomm, Samsung, and Huawei. Arms chip designs are also used by a number of smaller companies, such as MediaTek and Spreadtrum.
Why is ARM IPOing?
Arms parent company, SoftBank, is looking to raise cash and reduce its debt load. SoftBank acquired Arm in 2016 for $32 billion, and the company has since grown rapidly.
SoftBank is also facing pressure from investors to sell some of its assets. The company has invested heavily in a number of startups, many of which have not been successful. SoftBank is now looking to sell some of these assets to raise cash and improve its financial position.
When is ARM IPO?
ARM Holdings is set to go public on the NASDAQ Global Select Market in September. The company said in a Form F-1 filing with the SEC that it will offer 95.5 million American depository shares, and will target a sale price of $47-$51 per share for about 10% of the total shares outstanding.
How much money is Arm expected to raise in its IPO?
Arm Holdings, a subsidiary of SoftBank Group Corp., aims to secure up to $4.87 billion in its forthcoming initial public offering (IPO).
According to a recent filing with the US Securities and Exchange Commission, Arm intends to release 95.5 million American depositary shares priced between $47 and $51 each. Based on these figures, Bloomberg News estimates the companys valuation could reach up to $54.5 billion at the higher end of this price range. Additionally, underwriters have the choice to purchase up to 7 million more shares.
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How to invest in ARM stock?
If you want to invest in ARM, you can do so when it is listed on an exchange in September later this year. Once its publicly listed, you can buy shares of ARM during stock market open hours the same way you would buy shares of any other public company.
You can research ARM by analyzing their financial history, their F-1, and reports that become available after a company goes public. With Publics Premium offering, you can get access to advanced business metrics on many public companies and follow their financial performance, market cap and valuation, and growth metrics as the company progresses.
Once it goes public, ARM will have to publish its financial statements every quarter. These statements will give insight into ARMs cash flow, financial position, and potential financial risks, such as pending lawsuits.
Once youve decided whether or not to invest in ARM when its listed, you can buy the stock through a broker like Public.com
To buy shares in ARM or any listed company on Public:
Sign into the Public app or website and look up the company ticker you want to invest in.
Deposit money in your account through the multiple payment methods that Public supports, depending on your country of domicile.
Decide how much you want to buy and then place your order.
Conclusion
Arm holds a notable position in the semiconductor industry, with its technology found in various devices. While theres potential in the ongoing evolution of the smartphone sector and the budding IoT device market, its essential to recognize the inherent risks.
The semiconductor landscape is known for its cyclical nature, and competition among chip designers is intensifying. Furthermore, Arms ownership by SoftBank, a Japanese conglomerate, brings its own set of considerations.
Investors keen on exploring the semiconductor industry, including companies like ARM, are encouraged to gather comprehensive information, such as whats available on the Public app, before making any decisions.
FAQs
Q: What is ARM's ticker symbol?
A: Arm’s ticker symbol is expected to be “ARM.”
Q: When is ARM expected to IPO?
A: ARM is expected to IPO on September 13th 2023 and share trading to begin on September 14th 2023.
Q: How can I buy ARM stock?
A: Once Arm starts trading on the Nasdaq stock exchange, you can invest in it via a broker like Public.com
Q: How can I invest in ARM stock from the US?
A: You can invest in ARM and thousands of their US-listed stocks through Public’s web platform and Public’s US-based app, available on the US App Store and Google Play.