SoftBank's Arm files to list on the Nasdaq and reports $524M net income on $2.68B in FY 2023 revenue, down 1% YoY from $2.7B; the company wants the ticker ARM
- Arm, which is owned by SoftBank, filed on Monday to list on the Nasdaq. — The U.K.-based chipmaker is looking to go public during …
The listing is consequential for SoftBank because Arm is a major holding: a public quotation would create a visible market reference for that stake rather than leaving its value chiefly to private-market assessment.
First-order effects
Arm begins the Nasdaq listing process, giving prospective investors a detailed financial basis on which to assess the company, including $524M in net income on $2.68B of fiscal 2023 revenue.
SoftBank gains a formal route to establish a public valuation and potentially realize part of its Arm holding; the filing itself does not set the eventual sale price.
Second-order effects
The offering process shifts attention to how investors value Arm's licensing-and-royalty business despite its 1% revenue decline, rather than solely to its earlier growth record.
A public price for Arm would provide a more immediate benchmark for SoftBank's portfolio value and capital-allocation choices. Subsequent coverage shows that process progressed to an indicated $47-to-$51 share price range.
Third-order effects
If investors sustain a strong valuation for Arm, the market could treat scalable chip-design intellectual property as a distinct public-market asset class, with recurring royalty exposure carrying particular weight.
The IPO is also a test of whether public investors will reward long-term semiconductor-platform positioning when near-term revenue is flat; the answer will shape how closely parent-company stakes are marked to public markets.
The trend: Arm's filing is one data point in the renewed use of public listings to price and monetize strategically important semiconductor intellectual-property businesses.
Arm China being mentioned 142 times mostly as risk factors, alongside words like “Arm China's payments due to us are determined based on the financial information that Arm China provides to us” and “In the past, we have had issues obtaining timely and accurate information from Ar…
Arm filed for an IPO today. Few notes: - Taken private by Softbank in 2016 at $32B, last private “mark” at $64B - $2.7B in revenue in the 2023 fiscal year (-1% y/y) - 96% gross margins and 26% operating margins - 99% market share of the mobile applications processor chip...
Arm is one of the most important semiconductor firms on the planet. It creates the blueprints for chips that are designed by companies from Apple to Nvidia. Arm-based chips are in 99% of the world's smartphones. That's why its IPO is so closely-watched https://www.cnbc.com/...
One of the ARM F-1 risk factors is literally what Apple does, Qualcomm is about to do, and Samsung is rumored to do Funny to see it get its own point [image]
The ARM financials look sad! Revenue at $2.68bn actually shrank 1% last year and 2.5% last Q, earnings dropped 53% last Q. They want to IPO this at $60-70bn (according to CNBC), which would imply 22-26x revenue. What 🤡 would pay this? And what is Masa smoking? [image]
So to be clear: the top 5 customers in the last fiscal year contributed 57% of the $2.67 billion in revenue generated...that's a pretty concentrated customer base, especially given one of those top 5 customers is Arm China
The ARM IPO is D.O.A. Son is hoping to flip ARM to the public for the same inflated price he paid. The actual future of the chip world is not ARM, it's RISC-V. https://www.thetechnologyletter.com/ ... @Arm $SFTBY @RISC_V #investing #stocks #semiconductors #AI #RISCV [image]
A really sharp take here from @coryweinberg: The Arm IPO filing today looks pretty good for SoftBank. Until you consider that if it had actually completed its deal to sell Arm outright, SB would own a stake in Nvidia approaching $100 billion. 😬 https://www.theinformation.com/ ...
Arm says its top five customers (including Arm China) collectively accounted for 57% of total revenue for the fiscal year ended March 31 2023 — quite a reveal for a company on the verge of the biggest IPO since Uber's $75bn listing in 2019, no?