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Arm expected to unveil new data on IPO filing

Semiconductor designer Arm is speculated to release new data on its future IPO today. SoftBank (SFTBY, 9984.T) is in the process of acquiring a 25 percent stake in Arm from its Vision Fund 1. Yahoo Finance Markets Reporter Ines Ferre highlights Arm's potential anchor investors, its initial IPO valuation, and the impact this filing will have on AI adoption.

This post was written by Luke Carberry Mogan.

For more Yahoo Finance coverage on this topic:
Softbank's ARM files for what will likely be year's biggest IPO

Video Transcript

RACHELLE AKUFFO: Arm is expected to release info on its much anticipated IPO as soon as today.

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So what should investors expect?

Let's bring in "Yahoo Finance's" Ines Ferre to dig into this more.

Hey, Ines.

INES FERRE: Hey, Rachelle.

Yeah.

And this is going to be very much anticipated IPO.

Because Arm's IPO will be the biggest this year, and the biggest since Rivian's IPO.

You'll remember that in November of 2021.

So just to back up a minute, Arm is a British-based chip designer.

It sells blueprints that are needed for designing chips.

And the chip designs are used in most of smartphones.

Nvidia tried to buy Arm at $40 billion.

But because of customer and regulatory pushback, that deal did not go through.

Now, SoftBank recently bought a 25% stake in Arm that it didn't own directly previously that was held by its Vision Fund unit.

And SoftBank essentially, by doing that, was buying out the Vision Fund's Middle Eastern backers.

Now, by some calculations, you see it right there, the chip designer is valued at more than $64 billion, anywhere between 60 and 70.

And according to "The Wall Street Journal," some people familiar with the matter say that SoftBank is aiming to sell about 10% of the company in the offering.

And also, this offering will give SoftBank the ability to sell its holding in Arm over time to reap future benefits, gains, if the stock price appreciates.

Now, the initial filing, likely that will be dropped today-- is expected to be dropped today-- likely won't include the IPO price or a target price there.

That comes later.

The target range comes later.

Also, the roadshow will be happening as well.

And that will be where executives are meeting with potential investors.

But what we should be expecting today are details about the company, about its financials, its recent financials.

This is also the opportunity for the company to lay out the risks up for investors, if they do decide to invest in this company.

So it'll be really interesting.

Because, again, it's a big IPO.

And also, remember, this is related to AI and the big AI frenzy that we have seen.

So there will be a lot of interest about not just this IPO, but also the investor appetite when it comes to AI.

RACHELLE AKUFFO: Yeah.

We'll certainly have to see how that plays out in the IPO market.

Appreciate that update.

Our very own Ines Ferre.