British chipmaker Arm has filed to hold an initial public offering (IPO) on the Nasdaq exchange in the U.S. in what is widely expected to be the biggest listing of the year.
Arm, which designs microchips and semiconductors, is expected to hold its IPO in early September and raise as much as $10 billion U.S. from the share sale.
The company has filed to trade under the ticker symbol “ARM” on the Nasdaq exchange, which is home to many leading technology companies, including Apple (AAPL) and rival chipmaker Nvidia (NVDA).
Currently, Arm is majority owned by Japan’s SoftBank, which bought the company for $32 billion U.S. in 2016.
As part of its IPO filing with the U.S. Securities and Exchange Commission (SEC), Arm reported $524 million U.S. in net income on $2.68 billion U.S. in revenue for its fiscal 2023 financial year that ended in March.
Arm’s 2023 revenue was slightly lower than the company’s 2022 sales of $2.7 billion U.S.
The IPO has proven to be controversial after Arm, which is headquartered in Cambridge, England, chose to hold its IPO in the U.S. rather than the United Kingdom, a move that was seen as a setback for the London Stock Exchange.
Arm is viewed as one of the most important chip companies in the world. Its chip designs can be found in nearly every mobile device and personal computer (PC) in the world.
The company’s microchips are also prominent in computer servers and can be found in everyone of Apple’s iPhones. The company was founded in 1990 and today employs about 6,000 people.
SoftBank had previously tried to sell Arm to rival Nvidia, but the deal was ultimately blocked by regulators over concerns about competition and national security.
Arm has not yet provided a projected share price, making estimating its valuation difficult. However, analysts have pegged the value at $8 billion U.S. to $10 billion U.S., which would make it one of the biggest listings of the year.
The IPO market has largely been dormant over the last 18 months, especially for technology issuances. However, there are signs that the IPO market might be heating up again.
Grocery delivery company Instacart is also expected to hold an IPO in the U.S. this September, though a date has not yet been announced.
Related Stories
