Arm confirmed that it will go to the US for IPO, Valuation between $30 billion and $70 billion

On February 8, 2022, Nvidia and SoftBank announced the termination of the previous transaction, with the former officially giving up the acquisition of Arm. SoftBank immediately announced its intention to take Arm public by the end of the fiscal year ending March 31, 2023, which would be the largest IPO in the semiconductor industry, but the road to its listing is not without obstacles.

Members of the UK Parliament believe that Arm should be listed in London to ensure the alignment of national and investor interests and prevent harm. However, the resignation of UK Investment Minister Gerry Grimstone and Digital Minister Chris Philip, who were leading the London IPO, led SoftBank to shelve its original plans. SoftBank’s founder and CEO, Masayoshi Son, hopes that Arm will change the venue for its IPO to the NASDAQ in the United States. The economic downturn and the plummeting of technology stocks have forced Arm to postpone the IPO until mid-2023.

According to Digitimes, insiders revealed that Arm is ready to go public in the United States in 2023, rejecting the request for a dual listing in the United Kingdom and the United States by the British government. Currently, investment banks worldwide have estimated Arm’s valuation range to be between nearly $30 billion to $70 billion.

Arm CEO Rene Haas stated in a statement that after several months of negotiations with the British government and the Financial Conduct Authority (FCA), SoftBank and Arm have decided to only choose to go public in the United States in 2023, which is the best option for the company and its stakeholders. Son believes that the US investor base is more robust, making the valuation of Arm more attractive in the US stock market.

In addition, Arm will add a new office location in the southwest of Bristol, UK, and increase its number of employees, fulfilling Arm’s commitment to the UK government.