A dose of reality is tempering the outlook for Arm Ltd.’s public listing as the chip designer kicks off its roadshow this week, lowering expectations of both the valuation and the amount to be raised.
The SoftBank Group Corp.-owned chip unit now seeks to raise $5 billion to $7 billion, down from as much as $10 billion it previously sought, Bloomberg News reported. The valuation could also end up in the range of $50 billion to $60 billion, instead of a previous target range of $60 billion to $70 billion.
“We expect $50 billion - $60 billion is the more realistic target,” Astris Advisory analyst Kirk Boodry wrote in a note Friday. “The prospectus reveal was also less supportive as Arm reported revenue erosion and higher exposure to China than many expected.” Such “intra-company transactions add little value to price discovery whilst the prospectus clearly states that pricing was determined by pre-existing contractual conditions,” Boodry said. “Without knowing what those are, understanding the pricing is impossible.”
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.
Exclusive-SoftBank's Arm to ask for $47 to $51 per share in IPO -sourcesBy Echo Wang and Anirban Sen NEW YORK (Reuters) -Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp, is planning to ask investors to pay $47 ...
Read more »
Exclusive-SoftBank's Arm to ask for $47 to $51 per share in IPO -sourceBy Echo Wang NEW YORK (Reuters) - SoftBank Group's chip designer, Arm, is planning to ask investors to pay $47 to $51 for each of its shares when it ...
Read more »
SoftBank Lines Up Apple and Nvidia as Strategic Arm IPO BackersSoftBank Group Corp. has lined up some of Arm Ltd.’s biggest customers as strategic investors for the chip company’s initial public offering, including Apple Inc., Nvidia Corp., Intel Corp. and Samsung Electronics Co., according to people familiar with the situation.
Read more »
Exclusive-Arm signs up big tech firms for IPO at $50 billion-$55 billion valuation -sourcesBy Echo Wang NEW YORK (Reuters) -Customers of Arm Holdings Ltd including Apple Inc, Nvidia Corp, Alphabet Inc and Advanced Micro Devices Inc have agreed to ...
Read more »
SoftBank’s Arm Seeks $47 to $51 per Share in IPO, Reuters SaysSoftBank Group Corp.’s chip company Arm Ltd. will seek $47 to $51 per share from investors when it starts marketing its initial public offering next week, according to Reuters.
Read more »