As it seeks to pull off what could the largest initial public offering of the year, Arm Holdings Ltd. spent more than 3,500 words explaining the risks it faces in China, a critical market that accounts for about a quarter of its revenue.
In a chunky section of the IPO filing’s 330-page prospectus, the British designer of chips detailed a litany of challenges in the country: a concentration of business in the People’s Republic of China that “makes us particularly susceptible to economic and political risks affecting the PRC”; a downward spiral in Asia’s biggest economy; rising political tensions with the US and the United Kingdom; and the potential complete loss of control over its pivotal Chinese subsidiary.
“We depend on our commercial relationship with Arm China to access the PRC market,” the filing said. “If that commercial relationship no longer existed or deteriorates, our ability to compete in the PRC market could be materially and adversely affected.” Those “shaky ties” with Arm China present a risk to profit in the future, according to Bloomberg Intelligence analysts Marvin Lo and Chris Muckensturm.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Arm Needed 3,500 Words to Detail Its Risks in China Before IPO(Bloomberg) -- As it seeks to pull off what could the largest initial public offering of the year, Arm Holdings Ltd. spent more than 3,500 words explaining the risks it faces in China, a critical market that accounts for about a quarter of its revenue.Most Read from BloombergBorrowers With $39 Billion in Student Loans Finally See ReliefMusk Told Pentagon He Spoke to Putin Directly, New Yorker SaysQuant Trader Doubles Fortune to $11 Billion as XTX Profit SurgesS&P Joins Moody’s in Cutting US Bank
Read more »
U.S. stocks may start to question economic resilience, says Morgan StanleyFirm’s equity strategists think S&P 500 will likely struggle to make more headway
Read more »
Arm Listing Set to Be Turning Point for IPO Market, SoftBankArm Ltd. is expected to unveil its filing for an initial public offering as soon as Monday, giving the market a peek at the chip designer’s financial health seven years after it was acquired by SoftBank Group Corp.
Read more »
Arm IPO to put SoftBank's AI hard sell to the testBy Anton Bridge TOKYO (Reuters) - When SoftBank Group-owned chip designer Arm files for a Nasdaq IPO on Monday, investors are set to hone in on a key ...
Read more »
Arm IPO to put SoftBank's AI hard sell to the testWhen SoftBank Group-owned chip designer Arm files for a Nasdaq IPO on Monday, investors are set to hone in on a key question - will the company have 'exponential growth' due to the boom in artificial intelligence as CEO Masayoshi Son claims? Since acquiring the chip designer in 2016, Son has positioned Arm as the tech investment conglomerate's crown jewel asset, and in recent months has enthusiastically talked up the role it could play in AI. Arm 'is at the centre of a group of AI-related companies to generate synergies' and '85% of SoftBank Group assets are AI-related companies overseas,' he told investors in June.
Read more »
Blackstone ‘Tac Opps’ Arm Rounds Up $5.2 Billion for New BetsBlackstone Inc. wrapped up a record $5.2 billion fund for deals that defy easy categorization and aren’t constrained by any particular investment style.
Read more »