British chipmaker Arm set for IPO despite industry woes
- August 22, 2023
- Posted by: Quatro Strategies
- Categories: AI & Semiconductors, Asia Pacific, Business & Politics, Europe
Arm Holdings, a leading chip designer, reported a 1% fall in annual revenue due to a slowdown in smartphone sales. The company’s annual sales for the year ended March 31 were $2.68 billion, primarily impacted by a decline in global smartphone shipments. Arm’s stock market launch is expected to be the largest IPO of the year and could revive the IPO market, which has seen volatility in recent times. Despite its reliance on smartphones for royalties, Arm’s relatively modest decline in revenue suggests that its per-chip rates have increased.
Arm Holdings’ chip technology powers most smartphones, including iPhones. The company did not reveal the number of shares it plans to sell or the valuation it is seeking for the IPO. SoftBank, Arm’s parent company, plans to sell about 10% of Arm’s shares in the IPO and is aiming for a valuation of between $60 billion and $70 billion for the chip designer.
Arm’s technology is widely used in smartphones, laptops, and servers, and it has also gained a 10% market share in cloud computing. The company’s chip designs are dominant in the smartphone industry, and it’s looking to expand into other segments such as cloud computing.
The IPO will be a boost to the market, and Arm is expected to list on the Nasdaq under the ticker symbol ‘ARM’. Barclays, Goldman Sachs, JPMorgan Chase, and Mizuho Financial Group are the lead underwriters for the offering. Arm Holdings is known for its chip design technology that is used in various electronic devices and has been a key player in the tech industry for several years.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
South Korea emerges as trusted nuclear supplier amid global realignment
South Korea is rapidly emerging as one of the most credible contenders in the global race to scale up nuclear energy, thanks to its rare blend of industrial capability, cost control, and geopolitical acceptability. As climate change, energy security, and the demands of an AI-powered digital economy push nations toward zero-emission baseload power, the global nuclear industry is undergoing a quiet but profound transformation—and South Korea is positioning itself at the center of it.
At the heart of Korea’s success is the combination of a deeply integrated industrial ecosystem and a long-standing commitment to nuclear power that has persisted without the decades-long pauses seen in other major nuclear nations. Since launching its first nuclear power plant in the 1970s, South Korea has maintained continuous development of domestic reactors and infrastructure, accumulating invaluable expertise in project delivery, design, and supply chain coordination.
India’s Reliance Industries enters crude oil trading arena influencing dated Brent
Reliance Industries Ltd., based in Mumbai, India, has entered the league of companies trading crude oil that plays a crucial role in determining the price benchmark known as Dated Brent. This move underscores the increasing influence of US supply on this important market measure…
Morocco to build $420 million gas-fired power plant to diversify energy mix
Morocco’s national water and electricity utility (ONEE) is set to construct a 990-megawatt (MW) gas-fired power plant with an investment of 4.15 billion dirhams ($420 million), according to the bourse regulator AMMC. The funding for the project will involve a 20% contribution from ONEE, with the remaining 80% financed through loans…
