By Yelin Mo, Max A. Cherney and Stephen Nellis (Reuters) - The upcoming listing of semiconductor technology firm Arm Holdings Ltd is supposed to be ...
STORY CONTINUES BELOW THESE SALTWIRE VIDEOS - The upcoming listing of semiconductor technology firm Arm Holdings Ltd is supposed to be strong medicine for what has been ailing the U.S. IPO market, as well as provide a shot in the arm for Arm owner Softbank Group Corp.
Virtually all of that revenue comes from Arm China, an independent entity that has the exclusive rights to distribute Arm's technology in the country. That makes Arm China, not better-known names like Apple or Qualcomm, Arm's largest customer. And this customer has a history of late payments and presents"significant risks" to Arm's business, according to its filing.
Beyond these internal issues, U.S. sanctions limiting sales to China along with rising competition in the Chinese market cast doubt on Arm China's long-term trajectory.Arm China has posed ongoing challenges for SoftBank despite its strong early growth. The entity was established in 2018 when SoftBank sold a 51% stake in Arm Ltd’s Chinese subsidiary, Arm Technology Co Ltd, to a group of Chinese investors led by private equity firm Hopu Investments.
However, analysts believe distribution of Arm's IP generates the majority of revenue. That business faces challenges from U.S. sanctions restricting sales of advanced technology to China, which Arm said had cost it at least $63 million in royalty revenue in its most recent fiscal year.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Arm Needed 3,500 Words to Detail Its Risks in China Before IPO(Bloomberg) -- As it seeks to pull off what could the largest initial public offering of the year, Arm Holdings Ltd. spent more than 3,500 words explaining the risks it faces in China, a critical market that accounts for about a quarter of its revenue.Most Read from BloombergBorrowers With $39 Billion in Student Loans Finally See ReliefMusk Told Pentagon He Spoke to Putin Directly, New Yorker SaysQuant Trader Doubles Fortune to $11 Billion as XTX Profit SurgesS&P Joins Moody’s in Cutting US Bank
Read more »
Arm Needed 3,500 Words to Detail Its Risks in China Before IPOAs it seeks to pull off what could the largest initial public offering of the year, Arm Holdings Ltd. spent more than 3,500 words explaining the risks it faces in China, a critical market that accounts for about a quarter of its revenue.
Read more »
Arm Listing Set to Be Turning Point for IPO Market, SoftBankArm Ltd. is expected to unveil its filing for an initial public offering as soon as Monday, giving the market a peek at the chip designer’s financial health seven years after it was acquired by SoftBank Group Corp.
Read more »
Arm IPO to put SoftBank's AI hard sell to the testBy Anton Bridge TOKYO (Reuters) - When SoftBank Group-owned chip designer Arm files for a Nasdaq IPO on Monday, investors are set to hone in on a key ...
Read more »
Arm IPO to put SoftBank's AI hard sell to the testWhen SoftBank Group-owned chip designer Arm files for a Nasdaq IPO on Monday, investors are set to hone in on a key question - will the company have 'exponential growth' due to the boom in artificial intelligence as CEO Masayoshi Son claims? Since acquiring the chip designer in 2016, Son has positioned Arm as the tech investment conglomerate's crown jewel asset, and in recent months has enthusiastically talked up the role it could play in AI. Arm 'is at the centre of a group of AI-related companies to generate synergies' and '85% of SoftBank Group assets are AI-related companies overseas,' he told investors in June.
Read more »
Morgan Stanley Is One of the Only Big Banks Left Off Arm’s IPOThere’s no sign of Morgan Stanley in Arm Ltd.’s draft filing for its initial public offering, a rare event for a bank that’s often a lead adviser on landmark technology IPOs.
Read more »