Arm Files Paperwork for IPO on Nasdaq

Arm has filed paperwork with the SEC for an initial public offering (IPO) on the Nasdaq. The company will be listed under the ticker ARM, with American depositary shares (ADS) representing its ordinary stock.

Financials and Acquisition

According to the filing, Arm reported revenue of $2.68 billion for the fiscal year ended in March 2023, slightly less than the previous year's $2.7 billion. The company's net income from continuing operations for the same period was $524 million, down from $676 million the prior year.

Arm was acquired by SoftBank in 2016 for $32 billion. However, a deal to sell Arm to Nvidia in 2020 was terminated due to opposition from global regulators and other chip companies.

Importance of the IPO

Given the recent freeze in tech stock debuts, technology and IPO observers will be closely watching Arm's IPO. The company's primary source of revenue is licensing its chip architecture and other chip design technologies to semiconductor companies and hardware makers. Arm's technology powers chips in almost every smartphone, including Apple's iPhone and most Android-based devices.

IPO Details

Arm has not provided specific details regarding the timing of the IPO. Barclays, Goldman Sachs & Co. LLC, J.P. Morgan, and Mizuho are acting as joint managers for the proposed offering.