Arm Holdings, a leading semiconductor company, has filed paperwork with the SEC for an initial public offering on the Nasdaq. The company will be listed under the ticker ARM, with American depositary shares (“ADS”) representing its ordinary stock.
In its filing, ARM reported revenue of $2.68 billion for the fiscal year ended in March 2023, which showed a slight decrease from the previous year’s $2.7 billion. Additionally, the company’s net income from continuing operations for the same period was $524 million, down from $676 million the prior year.
Acquisition and Termination of NVIDIA Deal
Arm was acquired by SoftBank for $32 billion in 2016. However, in 2020, the company’s agreement to sell Arm to Nvidia (NVDA) was terminated after facing opposition from global regulators and other chip companies.
Importance of IPO
Given the general freeze in tech stock debuts over the last year, technology and IPO observers are eagerly watching Arm’s upcoming listing.
Arm’s Revenue Model
Arm generates revenue by licensing its chip architecture and other chip design technologies to semiconductor companies and hardware makers. Their technology powers chips inside nearly every smartphone, including popular devices like Apple’s iPhone and most Android-based phones.
Although Arm has not disclosed the timing of the IPO, Barclays, Goldman Sachs & Co. LLC, J.P. Morgan, and Mizuho have been appointed as joint managers for the proposed offering.