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
Mercedes-Benz bets on American manufacturing to navigate tariff risks
Mercedes-Benz announced on Thursday that it will begin producing a new vehicle at its Tuscaloosa, Alabama, plant in 2027, as part of a broader strategy to strengthen its U.S. presence amid escalating trade tensions. The company did not reveal which model will be added, saying only that it belongs to a “core vehicle segment” and reflects Mercedes’ deepening commitment to the American market.
The move follows President Donald Trump’s imposition of a sweeping 25% tariff on automotive imports, a policy that has rattled global carmakers and disrupted production planning. Although Trump softened some of the tariff measures this week, the broader impact on supply chains and investment strategies remains significant.
Poland passes law to boost onshore wind in major energy policy shift
Poland’s parliament has passed a key piece of legislation aimed at revitalizing the development of onshore wind farms, marking a significant shift in the country’s energy policy. The measure, approved late Wednesday, is intended to accelerate renewable energy growth and bring down electricity prices, aligning with the current government’s green transition agenda.
The legislation relaxes restrictions on where wind turbines can be built, specifically reducing the minimum distance required between new wind farms and residential areas. However, it maintains stricter permitting rules for areas near protected natural zones.
Europe’s defence boom attracts venture capital, but hurdles persist
As Europe drastically increases its defence spending in response to heightened geopolitical threats, venture capital (VC) firms are starting to chase opportunities in the continent’s long-overlooked defence tech sector. But even amid the growing appetite, structural obstacles — particularly European Union ESG rules and the dominance of legacy defence giants — still limit how quickly start-ups can scale, and how freely investors can engage.
The EU has pledged up to €800 billion ($920 billion) in defence spending through 2030. Much of that will flow to established prime contractors like Airbus in France and Rheinmetall in Germany. Yet with these giants overwhelmed by wartime procurement demands, investors see an opening for nimble defence tech start-ups to deliver innovative solutions — and potentially become acquisition targets for bigger firms later.
