(Bloomberg) -- Arm Holdings Plc’s long-anticipated initial public offering is set to price Wednesday and investors will be watching to see how owner SoftBank Group Corp. fares in what is set to be the largest listing of the year — and whether it helps reignite equity capital markets.Most Read from BloombergLuxury Cruise Ship Full of Australians Stuck in Greenland ArcticiPhone Pro’s Titanium Finish Stands Out in First Look at DeviceApple’s iPhone 15 Debut Includes Higher Price on Top ModelAT&T, T
The IPO touches on an array of hot-button issues for tech investors, including potentially excess enthusiasm related to artificial intelligence, as well as geopolitical risks involving China and its role in the chip wars. The offering even includes the world’s most valuable semiconductor company, Nvidia Corp., as a participant.
SoftBank, which acquired Arm seven years ago for $32 billion, has helped grow the chip designer and change its business model. The firm’s investment in Arm hasn’t been all smooth sailing, though.In 2020, SoftBank tried and failed to sell the company to Nvidia for $40 billion. That move angered customers who didn’t want to see Arm, which supplies the foundational technology used by the mobile-phone industry, fall into the hands of a single buyer.
In another uncommon move, it’s spreading underwriting fees evenly among the four investment banks leading the offering: Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group Inc. Raine Group LLC, which SoftBank owns a stake in, is also advising the company. This model was used by Alibaba Group Holding Ltd. almost a decade ago.
With only $14 billion raised in US IPOs this year compared with $244 billion at this point in a record-setting 2021, arranging anchor investments ahead of a listing is proving popular with other IPO candidates, too. Instacart Inc. and Klaviyo Inc. also are bringing on investors in advance of their listings.
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’s IPO Pricing to Test Everything From AI Hype to China RiskArm Holdings Plc’s long-anticipated initial public offering is set to price Wednesday and investors will be watching to see how owner SoftBank Group Corp. fares in what is set to be the largest listing of the year — and whether it helps reignite equity capital markets.
Read more »
Instacart IPO: Don't expect an IPO rush just yet, analyst saysThere are a lot of investors hoping that if companies like Arm (ARM), Instacart, and Klaviyo have successful market debuts, even more companies will go public. But that may not be the case, says Pitchbook Lead VC Analyst Kyle Stanford. Stanford warns that higher interest rates and high inflation are still hampering the IPO market. Stanford says that even if Instacart's debut goes well, 'I don't think there's anything that really indicates to us that it's going to be a full-fledged rush back to the IPO market.' When it comes time for companies to choose whether to go public or stay private, Stanford says it's a tough choice because 'there's not as much money in the private markets now as there was... two years ago.'
Read more »
SoFi’s Full-Service Ambitions Face Key Test With Instacart IPOSoFi Technologies Inc.’s effort to transition from upstart fintech firm to the big leagues of financial institutions will face an important step possibly as soon as next week when the company helps take Instacart Inc. public.
Read more »
Instacart reveals IPO detailsInstacart is getting ready to make its trading debut later this month. The company filed new paperwork showing it has set its offer price at between $26 and $28 a share. Yahoo Finance's Josh Lipton breaks down the company's valuation numbers.
Read more »
Instacart IPO May Slash Value to $9.3 Billion Amid Slowdown(Bloomberg) -- Instacart and its backers set the stage for an initial public offering that may value the grocery-delivery business at as much as $9.3 billion, less than a quarter of what it was worth at the height of the Covid-19 pandemic.Most Read from BloombergTrudeau Is Stuck in India With Faulty Aircraft After Hearing Criticism From ModiThe Mighty American Consumer Is About to Hit a Wall, Investors SayMeloni Tells China That Italy Plans to Exit Belt and RoadIndia’s G-20 Win Shows US Learning
Read more »
Klaviyo Draws BlackRock, AllianceBernstein to $518 Million IPOMarketing and data automation provider Klaviyo Inc. has attracted cornerstone investors including BlackRock Inc. for a US initial public offering that’s set to raise as much as $518 million.
Read more »