The IPO, planned for September, is on track to be the year’s largest and could be one of the biggest tech listings ever on a US exchange. While Bloomberg News reported Arm was aiming to be valued at $60 billion to $70 billion in an IPO raising $8 billion to $10 billion, that target could be lower since SoftBank has decided to hold onto more of the company after buying Vision Fund’s stake in it.
Arm’s debut could spur dozens of startups such as online grocery delivery company Instacart Inc. and marketing and data automation provider Klaviyo to follow through — or further delay — their own IPO plans.It’s also the latest twist for Arm, which had a deal to be acquired by Nvidia Corp. that was called off last year after opposition from customers and regulators. The listing may lead to a payday for SoftBank, which is looking for a win after an expansion into startup investing that went awry.
The listing will be a welcome event for fee-starved investment bankers, whose commissions and bonuses have shrunk with the dearth of IPOs this year.