Arm IPO 2023: How to Invest and What To Know
The Arm IPO is projected to be, potentially, the biggest IPO ever in the history of the U.S., with an anticipated goal from Arm to raise up to $4.9 billion.
Given the incredible amount of news coverage, hype and anticipation the Arm holdings IPO has stirred over the past few months, it’s almost impossible those involved in the markets have not taken some mental note on how to invest in the Arm stock IPO.
While Arm, a long-established chip, or semiconductor, company, was publicly traded on the LSE (London Stock Exchange) and NASDAQ for 20 years, they were then bought by SoftBank (Japan) in 2016, where SoftBank then became the controlling shareholder.
In this article, we go into more detail on this historical IPO, what to expect, review how to invest in the Arm semiconductor IPO, and more.
Interested in learning more? Let’s begin.
Table of Contents
Arm IPO: Company Stats of Arm Holdings
To start off in our coverage of the Arm Limited IPO, we will review some of the main company stats, below:
- The company was founded in 1990, with headquarters in Cambridge, United Kingdom.
- Arm’s 2022 revenue was $3.7 billion.
- Arm’s potential valuation is between $30 and 70 billion.
- There are approximately 6-7,000 employees of Arm currently.
- IPO date set at 13/09/2023.
- Planned to be listed on NASDAQ.
With a long and eventful history, the company seems to show potential for investors, generally speaking, especially considering the market action seen this and last year by the volatile semiconductor industry.
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Arm holding IPO: Why the Hype?
What could be a common misconception is that Arm produces and manufactures chips or semiconductors, but actually, this is incorrect - Arm’s line of business is the design and development of microchips. Arm is also a provider of processor IPs (Intellectual Properties).
This can be seen as a unique position, given that Arm has been designing and developing microchips since 1990 and since then, has amassed a considerable client base; the Arm-based microchips have been used in almost every video game console, along with most televisions, smartphones and tablets.
To further the concept of Arm’s unique position, let’s touch base briefly on their business model: Arm strictly designs and develops microchips and then licenses that design to the CPU makers, for example - Samsung and Apple.
Remaining in the key niche position of design only puts Arm in an intelligent position, from the perspective of the business model.
To heighten the expectations further, leading tech companies such as Apple (AAPL), Google (GOOG), Nvidia (NVDA), AMD (AMD), TSMC (TSM), Samsung (SMSN) and Intel (INTC) are all mentioned to have shown interest in buying a sizeable sum of shares once the IPO is released.
Given ongoing issues with global shortages of microchips, this could potentially put Arm in a strategic position, if they manage to implement a design solution which could improve the manufacturing process. This, at the moment, is purely hypothetical.
On the other hand, the future at this point is uncertain, as there are many players in the semiconductor ecosystem which could pose competition for Arm.
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Arm company IPO: What Can We Expect?
As it often goes with IPOs (Initial Public Offerings), much of the projections are dynamic leading up to the release - the Arm IPO is likely no different.
Currently, Arm IPO valuation is stated to be worth up to $52 billion - more broadly, between $30 and $70 billion.
In terms of the Arm IPO share price, once the IPO is released on Arm IPO date September 14, 2023, it is projected to be between $47 and $51 (per share).
While SoftBank, the Japanese firm which, until the release, privately owns Arm, aims for a goal of $4.9 billion, this could rise up to $5.2 billion if the banks who underwrite the IPO act on the option to buy additional shares from SoftBank.
In regards to the U.S. IPO market, it could be considered a general hope that the Arm IPO will re-ignite what has now become a rather dull IPO market, given the ongoing economic uncertainty, rising interest rates and 2022-2023’s relative bear market.
As can be perceived, there is obvious excitement from all or most groups relative to both finance and the tech industry; Arm is seen to be an indispensable resource for any sector relative to technology.
According to the Securities and Commissions filing, despite Arm going public, SoftBank will still own 90% of the shares once they go public.
How to Invest in the Arm IPO with Admirals
As it may be a considerable understatement, many are counting down the days until the Arm IPO Softbank is released.
At Admirals, you are able to invest in the new Arm IPO directly. Upon the release date (13/09/2023), ARM will be available to purchase directly from the popular Invest.MT5 platform.
Invest.MT5 is a trading platform powered by MetaTrader 5, a globally recognized platform.
MetaTrader 5 is a tool to help both traders and investors utilize various trading robots, indicators, signals and more, combined with additional features to assist with both technical and fundamental analysis.
Are you ready for the biggest IPO release in U.S. history (potentially)?
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Arm IPO: Conclusion
In the past few years, from 2021 to 2022, the financial world has seen its fair amount of anticipated IPOs - and while that has slowed down so far in 2023, the release of Arm could potentially be the stimulant the U.S.IPO market needs.
Will the Arm public stock skyrocket past the projected maximum of $51 per share? Or, will the price decline rapidly below its projected low of $47 per share. Time will tell!
If you’d like to get in on the bottom floor of the Arm Softbank IPO, you can register for a live account today with Admirals.
A live account allows you to trade over 5000+ financial assets in real-time, with free access to our tools and educational resources.
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How much is ARM IPO worth?
Currently, Arm IPO valuation is stated to be worth up to $52 billion - more broadly, between $30 and $70 billion.
Is Arm a chip company?
Arm is a long-established chip or semiconductor company involved in the design design and development of microchips as well as providing processor IPs. Arm has been designing and developing microchips since 1990.
What is the expected price of the Arm IPO?
At this time of writing, the expected price range of the Arm IPO is between $47 - $51.
Can I buy ARM IPO?
After the launch of the Arm IPO, which is anticipated to be September 14, 2023, you can purchase the shares directly through a trusted and reputable online broker, such as Admirals. Alternatively, you can consult your local bank.
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