Arm going public generates buzz, but may not be a sign the IPO market is thawing

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Unfortunately, ARM is not a typical example of the kind of 'tech unicorn' that truly excites the IPO investor.

The announcement that Arm had filed for an initial public offering and would likely soon begin a roadshow has IPO watchers giddy with hopes that a two-year drought is slowly coming to an end, particularly for tech unicorns. On the surface, it sounds promising. The current estimated valuation of the company is in the $60 billion range. If the company floats 10% of that , the IPO would raise roughly $6 billion. That would make it the largest IPO since Rivian went public at $11.

" Here, Arm could make a big difference. It's implied current valuation of $64 billion is based on the 25% stake Softbank bought in ARM from Vision Group for $16 billion. But investors may balk at that valuation. If it prices significantly below that, it will send a further signal that haircuts will be necessary for other companies. That's already happening.

 

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What ARM's expected debut means for the IPO market and SoftBankArm, which is owned by SoftBank, is expected to file for its initial public offering as soon as Monday, according to reports.
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