ARM Holdings (ARM)

[winston]

Arm Holdings Limited – IPO Fact Sheet
September 13, 2023

Offering 95,500,000 shares at US$47-US$51 per share for a total offer amount of US$5.2bn.

Largest IPO valuation of ~US$55bn with 1,026,078,866 shares outstanding.

ARM mainly generates revenue from licensing and royalty fees from its semiconductor architecture design. It does not sell or manufacture any semiconductors.

Top end of IPO range will put ARM’s LTM P/S ratio at 20x, with a LTM P/E ratio of 105x.

Peer valuation of Broadcom and Qualcomm are 31x and 10x LTM P/E, respectively.


IPO Details

Semiconductor chip designer ARM’s highly anticipated initial public offering (IPO) is set to list on the Nasdaq this coming Thursday (14th Sep 23), in what appears to be the most valuable IPO in market history.

The company is looking to offer 95,500,000 vendor shares at a price per share of US$47-US$51, at an offer amount of ~US$5.2bn, with a lock up period of 180 days for company insiders.

This would value ARM at ~US$55bn, making it the world’s largest IPO in history, and 38% higher than NVDA’s proposed US$40bn acquisition last year.

ARM has since enticed many of its major customers to subscribe to its IPO, contributing to the 10x oversubscription. It has also said that it would not offer any more shares, which we think could lead to ARM pricing its offering slightly above its guided per share range of US$47-US$51.

Source: Phillips

https://www.stocksbnb.com/reports/arm-h ... act-sheet/

[winston]

not vested

SoftBank-backed Arm prices IPO at US$51 a share

ARM Holdings priced its initial public offering (IPO) at the top end of its range to raise US$4.87 billion in the largest listing of the year, one that could give a major lift to long-suffering equity markets.

The chip designer, which is owned by SoftBank Group, sold 95.5 million American depositary shares for US$51 apiece, according to a statement on Wednesday (Sep 13) confirming an earlier Bloomberg News report. Arm had marketed the shares for US$47 to US$51 each.

At the IPO price, Arm is valued at about US$54.5 billion, according to Bloomberg News calculations. Underwriters have the option of buying as many as seven million additional shares.

While Arm had previously aimed to raise US$8 billion to US$10 billion, that target was lowered at least in part because SoftBank decided to buy the roughly 25 per cent stake held by its Vision Fund and then hold onto a larger portion of the shares in the company.

After the IPO, SoftBank will still control about 90 per cent of the company’s shares, Arm said in its filings with the US Securities and Exchange Commission.

Arm was setting aside more than US$700 million of the stock in the IPO to be bought by some of its biggest customers, including Intel, Apple, Nvidia, Samsung Electronics and Taiwan Semiconductor Manufacturing.

The offering is being led by Barclays, Goldman Sachs Group, JPMorgan Chase & Co and Mizuho Financial Group. Raine Securities is also acting as a financial adviser in connection with the IPO.

Source: Business Times

https://www.businesstimes.com.sg/compan ... us51-share

[behappyalways]

Chip designer Arm jumps 25% in debut win for owner SoftBank
https://www.theedgesingapore.com/news/i ... r-softbank

[winston]

ARM trading below it's IPO price

https://twitter.com/zerohedge/status/17 ... 3318342817

[behappyalways]

How Arm Powers Chips By Apple, Amazon, Google And More
https://m.youtube.com/watch?v=BSpZQRY-SjE

[winston]

not vested

1Q Earnings

Arm Holdings shares also slipped after earnings.

However, revenue rose 47% to $928 million, and earnings increased to 36 cents a share from just 2 cents a year earlier.

TheStreet's Charley Blaine points out that those results beat Wall Street’s outlook but Arm Holdings' expectation for between $3.8 billion and $4.1 billion in fiscal 2025 revenue was a bit below analysts' estimates.

Given that the shares are trading with a forward PE of 70, that may have been enough to trigger some selling.

Nevertheless, Arm remains a leader in semiconductor design and management expects 20% growth over the next three years. Opportunity? Maybe.

Source: The Street

https://www.thestreet.com/technology/ke ... m_content=