Soft Bank Group Corp. wants Arm Ltd. to be valued at at least $60 billion when it goes public and has offered Goldman Sachs Group Inc., JPMorgan Chase & Co., and Mizuho Financial Group Inc. to lead a credit arrangement for the company.
The company’s worth of more than $60 billion is a risk for SoftBank CEO Masayoshi Son, who bought it for approximately $32 billion in 2016.
Japanese owner looking for a higher price
Arm’s high valuation is meant to persuade investors that the firm is worth more than its semiconductor competitors. Nonetheless, the company’s valuation is still liable to fluctuate based on a range of variables, including market circumstances.
Chip stocks rose sharply during the epidemic, owing to a surge in demand for work-from-home technologies, but have since leveled out. In 2022, the Semiconductor Index on the Philadelphia Stock Exchange lost 11%.
Despite the fact that Arm is not well-known among consumers, its impact on the electronics sector cannot be overstated. The firm’s innovations lie at the heart of the components that underpin most of today’s economy, and its footprint is expanding.
Many of the world’s leading firms buy and license semiconductor core components from the company, which also offers chip designs.