On August 23, 2023, Arm Holdings (“Arm” or the “Company”), the UK-based chip design company, formally submitted its Initial Public Offering (“IPO”) prospectus to the NASDAQ stock exchange. Arm’s significance in the world of semiconductor intellectual property (IP) is undeniable; its technology powers a remarkable 95% of smartphones globally, including both iPhones and most Android devices. In addition, Arm’s influence stretches far beyond the devices we hold in our hands.
▲ Rivian Automotive (NASDAQ: RIVN)
Although the IPO prospectus doesn’t reveal the exact terms of the stock sale, leaving its valuation undetermined, experts speculate that Arm could be valued as high as US$60 to $70 billion. If the IPO proceeds as planned, this valuation will make it the largest IPO since Rivian Automotive (NASDAQ: RIVN) raised a staggering US$13.7 billion in October 2021.
▲ Arm Holdings’ CEO, Rene Haas
At present, Arm is actively engaging with potential investors, with plans to go public in September 2023. The Company holds strong confidence in its potential to further enhance its enterprise value. Rene Haas, Arm’s CEO, emphasized in an interview that the Company’s focus is on expanding into various markets, particularly addressing the recent slowdown in the smartphone sector, and venturing into advanced computing areas, including chips for data centres and artificial intelligence applications.