Arm's IPO is postponed - it will take place later in 2023

NVIDIA's deal to buy UK processor architecture developer Arm, which fell apart this spring due to opposition from regulators and activists, prompted Japan's SoftBank Corporation, the current asset owner, to bring Arm shares to the stock market, but it expected to do so by March 31, 2023.
Now there is information that the IPO could take place later next year.Image source: Getty ImagesThe fact is that in the calendar of Japanese SoftBank in March next year ends another fiscal period, and this milestone was originally seen as a benchmark for the return of Arm shares to the stock exchange.
SoftBank's priority remained the idea of placing Arm shares on the U.S.
stock exchange, as this would have raised more funds, but British authorities insisted on a dual offering that would have brought Arm shares back to the London Stock Exchange as well.
Before SoftBank bought Arm for $32 billion in 2016, the last of the companies remained public.The Register reports, citing its own sources, that Arm shareholders these days began receiving notices that a public offering would take place later in 2023.
Arm officials have confirmed that such discussions are underway, but no final decision has yet been made.
The current macroeconomic situation prevents the placement of shares at the stock market in the first quarter.
Interestingly, Masayoshi Son, head of SoftBank's parent company, made a reference to his plans to develop Arm's business for several years ahead during his recent speech, but he did not mention anything about an IPO in his speech.
However, this can be explained by a change in the structure of Arm's upcoming offering.
If SoftBank retains a large block of shares, it will still be able to significantly influence the business of the British company.

British officials have not given up hope of persuading Arm to float in London

Before 2016, the British developer of processor architectures Arm was a public company whose shares were traded on the London Stock Exchange.
Under Theresa May, Arm's assets were bought by Japan's SoftBank Corporation, but the latter now expects to list them in New York.
British officials are trying to persuade SoftBank to float Arm on the London stock exchange.Image source: ReutersAccording to Nikkei Asian Review, the British authorities are trying to avoid reputational damage that could result from placing Arm on the New York Stock Exchange instead of the London one.
Prime Minister Boris Johnson even sent a letter to SoftBank's management urging them to list Arm in London instead of New York.
According to unofficial data, the British authorities are willing to attract funds of local investors to buy shares of Arm in the case if the placement takes place in London.According to SoftBank's management, namely the site in New York is the most suitable place for the IPO of Arm, because it plays a key role in the segment of high-tech assets.
Already this summer SoftBank may decide where to place Arm's shares.
After a failed attempt to sell assets to graphics solutions developer NVIDIA for $40 billion, Japanese business owners probably expect to gain much more during the IPO - according to some reports, up to $ 60 billion.
In May, the head of SoftBank said that Arm should go public by the end of this year.The British authorities are trying to create attractive conditions to attract issuers to the stock market in London, for this last year were relaxed requirements for wishing to get on the local stock exchange's quotation list.
Some parliamentarians are even calling for public funds to be invested in Arm's capital.
Since SoftBank intends to retain a large stake after Arm's placement, it will have to involuntarily take into account the opinion of the British authorities, as the company will continue to operate in the UK even if the shares are placed in New York.
So far, SoftBank has not made any decisions in this regard.

Qualcomm is ready to become a shareholder of Arm, if there are companions

Last quarter SoftBank's attempt to sell British processor architecture developer Arm to NVIDIA failed, after which the assets decided to return to the stock market, but not British, but American.
The head of Qualcomm Cristiano Amon (Cristiano Amon) spoke in favor of the idea to buy out Arm by a consortium of strategic investors, and in this respect, an ally of Qualcomm could become Intel.Image source: CTIA Everything Works Recall that the CEO of the latter, Patrick Gelsinger (Patrick Gelsinger), previously expressed a willingness to invest in Arm assets.
So far Qualcomm does not expect to form an alliance with Intel, but in general Cristiano Amon believes that the buyout of Arm assets by a group of investors would better serve the interests of the industry.
At the very least, it would preserve the balance of interests that would have been broken if the deal with NVIDIA had been consummated.
As you know, Qualcomm opposed the Arm and NVIDIA deal.
According to Amon, \"several companies should be involved in the deal, so that Arm could eventually maintain independence.
\"Until 2016, Arm shares were traded on the London and New York stock exchanges, but now SoftBank aims to return them only to the U.S.
stock exchange.
This causes discontent of some British politicians, who consider Arm a part of the national technological patrimony.
However, so far the attempts of the British authorities to influence the situation have not brought any results, but only contributed to the disruption of the deal with NVIDIA.As the leadership of Qualcomm, Arm managed to achieve success at the expense of collective investment in the ecosystem of the same name.
Arm's independence, according to Amon, was critical to the success of its namesake architecture.
Now everything is moving towards Arm platforms, as the head of Qualcomm thinks, so investments in the company's assets should justify themselves and contribute to its further development.
So far Cristiano Amon did not discuss with SoftBank the possibility of buying the Arm assets, because the management of the Japanese corporation was focused on solving problems with the rebellious head of the Chinese Arm division.
Whether such a conversation will take place in the near future is not specified.

Arm reported record revenues in 2021

Japan's SoftBank Group's Arm yesterday released a report on record revenues in 2021, with its CEO Rene Haas telling Reuters the business is very promising.
SoftBank has specific plans to float the company on the stock market.Image source: ArmSoftBank now plans to float the company in an IPO.
Previously, bureaucratic obstacles created by British regulators prevented it from being sold to American chip maker NVIDIA.Last year, the company received a total revenue of about $2.7 billion, up 35% compared to the previous year.
Of that, licensing revenue (not related to royalties) rose 61% to $1.13 billion, and royalties from chip sales using Arm technology rose 20% to $1.54 billion.According to the head of Arm, 29.2 billion chips using Arm technology were shipped last year, 8 billion of them in the fourth quarter of last year.
The company director said the growth in automotive technology development three to four years ago has borne fruit, and revenues from that segment more than doubled last year thanks to electrification and growth in the computing power of onboard vehicle systems.
The head of the company noted that the performance could have been even better if chipmakers had been able to supply in higher volumes.Haas declined to predict the potential value of Arm in the stock market.
It is known that in September NVIDIA proposed $40 billion for the whole company, and SoftBank itself once bought it for $32 billion.
According to CNBC referring to SoftBank's management, after the initial public offering (IPO) Arm in stock market Japanese owner intends to keep its controlling stake, so the loss of management of highly sought-after business is out of the question.
Earlier a scandal erupted in the company - its Chinese branch claimed de facto independence, but now it seems that control is gradually being restored.
According to Haas, the Chinese branch accounts for 20% of Arm's revenues.