TechDogs-"Arm, Leading Microchip Designing Giant, Plans Blockbuster US Share Sale!"

Manufacturing Technology

Arm, Leading Microchip Designing Giant, Plans Blockbuster US Share Sale!

By TD NewsDesk

TD NewsDesk

Updated on Fri, Aug 25, 2023

Overall Rating
As the curtain rises and drama unfolds, British microchip powerhouse 'Arm' throws a challenge by filing paperwork for a vast share sale in the United States. With this move by Arm, industry experts find themselves on the edge of their seats.


All this might sound like some highly anticipated play but it is a reality. A recent report sheds light on how Cambridge-based titan 'Arm,' renowned for crafting the brains behind everything right from smartphones to immersive game consoles, is all set for a momentous debut. You know what's worth noticing - the debut is on New York's iconic Nasdaq exchange, set to unfold this coming September.

The details about how many shares they're selling and their prices are still a secret but experts think this could be the most extensive initial public offering (IPO) since late 2021.

Interestingly, Arm chose to go to the United States instead of the London Stock Exchange, which has raised questions about the UK's ability to attract tech companies. However, the same report highlights according to Arm, "This decision is the best way forward for them, as American stock exchanges offer more visibility and potentially higher valuations."

What is an Arm exactly?
  • The report says, founded in 1990, Arm is hailed as the "crown jewel" of the UK's tech landscape. Earlier this year, rumors swirled that Prime Minister Rishi Sunak had been in renewed discussions with Arm's parent company regarding a London listing.

  • However, the firm decisively declared that it had no plans to tread that path. Maybe for Arm, the magnetic prowess of the US is more attractive.

  • The valuation Arm seeks is nothing short of cosmic, ranging between $60 billion (£47 billion) and $70 billion. This immense figure underscores the company's status as a cornerstone in the technology ecosystem, its chip designs forming the core blueprint for manufacturing giants like the Taiwan Semiconductor Manufacturing Company and tech giants Apple and Samsung in their chip-making endeavors.

Now the question arises Why IPO (initial public offerings)? For those unaware of the intricacies of IPOs, here's the lowdown:
  • Private companies seeking an infusion of capital embark on a journey toward listing on a stock exchange. In the initial phase of an IPO, these companies tender shares to potential investors.

  • The pricing of these shares typically lies in the hands of investment banks appointed to steer the process. However, once the shares begin trading publicly, their prices are driven by the elemental forces of supply and demand, ultimately culminating in determining the company's market worth.

#TheresMore to this saga.

In this whole scenario, Arm's resilience is tested as well. After a period of severe semiconductor scarcity during the pandemic, the chip-manufacturing realm has had to grapple with declining demand. Sales figures for Arm reflected these headwinds, dipping to $2.68 billion in the year concluding on March 31st, chiefly hurt by a global slump in smartphone shipments. In the following quarter, sales endured a 2.5% dip, settling at $675 million.

In a nutshell, the imminent Arm IPO, poised to set records and redefine the landscape of technology investments, is undoubtedly one of the most eagerly awaited events in the tech universe this year.

Besides, the story of this microchip magnate's journey to the Nasdaq promises to be epic, worth watching with bated breath as it unfolds.

Are you looking forward to UK microchip giant Arm’s debut on Nasdaq? Our comments section awaits your thoughts.

First published on Fri, Aug 25, 2023

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