SoftBank’s Arm Set to Launch Biggest US IPO in Nearly Two Years with Nasdaq Listing

Arm, a chip designer owned by SoftBank, has initiated the countdown to its IPO on Nasdaq, which is set to be the largest US IPO in nearly two years. SoftBank acquired Arm for $32 billion in 2016, and a recent internal transaction valued the company at $64 billion. Despite a near-monopoly on smartphone chips, Arm is experiencing a slowdown and is looking to diversify into automotive and cloud computing markets and increase the value of its IP. Arm’s complex relationship with China and a “material weakness” in its financial controls are among the risks detailed in the prospectus. The IPO is seen as a test of strength for the US IPO market after an 18-month drought.