ARM - the biggest initial public offering of 2023

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ARM designs core semiconductor components and licenses the blueprints, along with the fundamental code governing how software communicates with chips. 
The arrangement brought in USD 2.68 billion of revenue in the fiscal year that ended on March 31, making ARM one of the largest technology companies in UK. The Japan SoftBank Group Corp. acquired ARM for USD 32 billion in 2016, delisting it from the London Stock Exchange. SoftBank founder Masayoshi Son has regularly talked up the potential for more growth at ARM, which raised USD 4.87 billion in the IPO. Softbank sold a stake of about 10% in the form of American depositary shares. 
ARM Ltd. designs key parts of the chips powering almost every smartphone on the planet. That is given the Cambridge, UK-based company enormous strategic importance in the technology industry. The IPO, which valued the company at about USD 54.5 billion, drew some of its biggest customers as strategic investors including Apple Inc., Nvidia Corp. and Samsung Electronics Co., all keen to uphold the neutrality that is key to the success of ARM. 
SoftBank decided to buy the roughly 25% 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% of the shares of the company, ARM said in its filings with the US Securities and Exchange Commission.

Source: Bloomberg , 14/09/2023

Underlying at a glance

Ticker Description Indicative Spot BBG Target price BBG Buy & Hold (%) Upside (%)
9984 JT Softbank 6,581 7,529 100 14




Historical prices normalized to 100


Source: Vontobel, 14/09/2023


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