Get the full scoop on ARM Holdings’ IPO launch at $51 per share and discover what this means for the tech industry and potential investors!
Table of Contents
Hey everyone! We have got some super exciting news to share in the tech world.
ARM Holdings, the giant behind the chip designs in almost all the smartphones we use today, has announced its price for going public – and it is a big deal!
What is the Buzz?
So here is the low-down.
ARM has set its Initial Public Offering (IPO) price at $51 per share.
In simple terms, the company is selling its shares to the public for the first time at this price.
And guess what?
This pricing puts the company’s total value at a whopping $54.5 billion!
A Little Background on ARM
For those who might not be familiar, ARM is like the genius architect behind the processors used in many semiconductor manufacturers.
They are a big deal in the tech world; even though they do not make the chips themselves, they design them!
In 2016, another big player, the SoftBank Group, bought ARM for $36 billion.
They even tried selling it to Nvidia last year, but that did not work out, and now they are holding onto a giant 90% share of the company.
What is Happening with the Money?
All right, let us talk numbers! In their last fiscal year ending in March 2023, ARM made $2.679 billion, less than the year before, because people needed to buy more smartphones.
They still managed to net a cool $524 million. However, SoftBank has yet to spill the beans on what they plan to do with all the cash they will get from this IPO.
However, the word is that they are eyeing some aggressive moves in AI investments. We all are eager to see where that leads, aren’t we?
What Do the Experts Say?
Before we wrap up, let us see what the industry experts say.
Many big tech names, including Apple, Google, and Nvidia, are already showing interest in buying up to $735 million worth of shares at this IPO price, which is quite a vote of confidence.
On the flip side, not everyone is all cheers and celebration.
Some folks feel the company might be stretching its luck with the $51 price tag per share, pointing out the risks involved due to the large portion of business ARM has in China.
So, What is Next?
With the clock ticking down to the big trading day, everyone is watching closely to see how this big move by ARM will shake things up.
Some are optimistic, predicting good growth, while others are more cautious, advising to keep an eye on how things progress.
No matter how you look at it, it is a thrilling time in the tech industry, and we are all here for it, waiting to see how this story unfolds.
Stay tuned because we will bring you all the latest updates as they happen!
Keep those techy high, and catch you in the next update!
Get our best stuff sent straight to you! Join our WhatsApp Channel.