Arm Holdings is reportedly preparing for an initial public offering (IPO) on the Nasdaq, potentially in early September. The company is expected to be valued at around $60 billion at the time of the IPO, making it one of the significant IPOs of the year. Arm has been in discussions with several major tech companies, including Intel, Alphabet (Google’s parent company), Nvidia, and Amazon, regarding investments.
Notably, Nvidia attempted to acquire Arm last year for $40 billion, but the deal faced regulatory challenges from EU and US antitrust regulators and ultimately fell through. The potential IPO would provide Arm with a path to go public while retaining its independence.
Arm is known for its intellectual property (IP) and designs for microprocessors, which are widely used in various devices, including smartphones, IoT devices, and more. The company’s IP is licensed to many major technology companies, including Apple, Samsung, and Amazon.
The IPO is expected to include cornerstone investors, such as Amazon and other tech firms, but these investors are not anticipated to gain board seats or control. Instead, they are likely to bid heavily for shares when Arm goes public.
Arm’s decision to go public comes at a time when it aims to diversify its revenue streams, particularly as smartphone sales have slowed down. Increasing demand in sectors like automotive and artificial intelligence (AI) is expected to drive future growth for the company.
