Softbank’s Arm to Launch Biggest 2023 IPO
Softbank’s Arm Holdings, a British chip designer, is reportedly preparing for the biggest initial public offering (IPO) of 2023. The company is said to have lined up 28 banks to help with the IPO, which could value the company at up to $40 billion.
Background of Arm Holdings
Arm Holdings is a British semiconductor and software design company that is owned by Softbank Group Corp. It is the world’s leading semiconductor intellectual property (IP) supplier, with its technology being used in more than 95% of the world’s smartphones. Arm Holdings designs the processors that power many of the world’s most popular devices, including Apple’s iPhones and iPads, Samsung’s Galaxy phones, and Amazon’s Echo speakers.
Softbank’s Acquisition of Arm Holdings
Softbank acquired Arm Holdings in 2016 for $32 billion, making it the largest technology acquisition in Europe at the time. The acquisition was seen as a way for Softbank to diversify its portfolio and gain access to Arm’s technology and customer base.
Arm Holdings’ Financial Performance
Arm Holdings has seen strong financial performance since its acquisition by Softbank. In the fiscal year ending March 2021, the company reported revenue of $2.3 billion, up 11% from the previous year. Operating profit was $890 million, up 17% from the previous year.
Softbank’s Plans for Arm Holdings’ IPO
Softbank is reportedly planning to launch an IPO for Arm Holdings in 2023. The company is said to have lined up 28 banks to help with the IPO, which could value the company at up to $40 billion. The IPO is expected to be the largest in Europe since the listing of Royal Dutch Shell in 2005.
Reasons for the IPO
Softbank is reportedly planning the IPO in order to raise funds for its Vision Fund, a $100 billion technology investment fund. The IPO is also seen as a way for Softbank to monetize its investment in Arm Holdings and to reduce its debt.
Potential Impact of the IPO
The potential IPO of Arm Holdings could have a significant impact on the technology industry. It could create a new source of capital for technology companies, as well as provide a boost to the European technology sector. It could also provide a new source of liquidity for Softbank, allowing it to invest in new technologies and businesses.
Conclusion
Softbank’s Arm Holdings is reportedly preparing for the biggest IPO of 2023. The company is said to have lined up 28 banks to help with the IPO, which could value the company at up to $40 billion. The potential IPO could have a significant impact on the technology industry, creating a new source of capital for technology companies and providing a boost to the European technology sector.