AI Frenzy Prompts Nvidia's Once Takeover Target Arm Holdings To Boost IPO Price
Portfolio Pulse from Anusuya Lahiri
Arm Holdings Ltd., a British chip designer backed by Softbank Group Corp, is considering increasing its IPO price range after its share sale was subscribed sixfold. The company initially filed for its IPO at $47 - $51 a share, valuing it at $54.5 billion. The final pricing of the IPO is expected on Wednesday, with trading starting on Thursday. Arm expects revenue growth of 11% in its current fiscal year and an increase in the mid-20% range in fiscal 2025.
September 11, 2023 | 12:41 pm
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POSITIVE IMPACT
Softbank, as a backer of Arm Holdings, may see a positive impact if the IPO is successful and the company's revenue growth meets expectations.
As a major backer of Arm Holdings, Softbank stands to benefit from a successful IPO and strong revenue growth. The sixfold subscription of the share sale indicates strong investor interest, which could positively impact Softbank's investment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Softbank's other listing may also see a positive impact from Arm Holdings' IPO and expected revenue growth.
Similar to SFTBF, SFTBY, as another listing of Softbank, could also benefit from the successful IPO and strong revenue growth of Arm Holdings. The strong investor interest in Arm's share sale could positively impact this asset.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Nvidia, a former takeover target of Arm Holdings, may not be directly impacted by the IPO, but could face increased competition if Arm's revenue growth meets expectations.
While Nvidia was once a takeover target of Arm Holdings, it may not be directly impacted by the IPO. However, if Arm's revenue growth meets expectations, it could indicate strong performance and increased competition in the chip market, which could negatively impact Nvidia.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50