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Apple, Samsung to invest in SoftBank’s Arm in IPO

SoftBank Plans Arm Listing : Apple & Samsung

Apple and Samsung Electronics will invest in SoftBank Group-owned chip designer Arm at its initial public offering (IPO), expected in September, Japan’s Nikkei reported on Tuesday. As per a June Reuters report, Arm was in talks with some ten companies, including Apple, Samsung, and Intel, with the aim of bringing on one or more anchor investors in the offering.

Apple, Samsung, Nvidia, and Intel all plan to invest in Arm as soon as it is listed on the market, as per a Nikkei report. The SoftBank-owned firm will officially apply to the US Securities and Exchange Commission for the listing later this month, the newspaper said. Arm plans to sell the chipmakers stakes for “a few percent each”, the newspaper said.

Following the collapse of the deal to sell the chip designer Arm to Nvidia last year due to objections from antitrust regulators, SoftBank has been actively working towards listing Arm. Sources from Reuters suggest that the US listing has the potential to generate approximately $8 billion to $10 billion. During an earnings briefing on Tuesday, SoftBank’s CFO did not provide specific information about the listing date or fundraising target, but did mention that the preparations were progressing smoothly.

Despite unexpectedly reporting a loss on Tuesday, SoftBank expressed its intention to reengage in new investments. This decision comes as its Vision Fund unit achieved a positive financial outcome for the first time in six quarters, prompting SoftBank to consider exploring new investment opportunities.

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