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SoftBank Group is looking to float shares of its chipmaking unit Arm Ltd. in September after receiving approval from the US Securities and Exchange Commission (SEC) and stock exchange operator Nasdaq. Arm is expected to reach a more than $60 billion valuation by next month, making it the most extensive initial public offering (IPO) this year and some of the biggest tech companies are looking for a piece.

Arm to Let Leading Chipmakers Buy In

Arm, a UK-based chipmaking unit owned by SoftBank Group, plans to list its stock in an IPO on the Nasdaq stock exchange in September. According to Asia Nikkei, SoftBank intends to apply with the SEC later this month, followed by securing approval from Nasdaq.

Per the report, several leading global chipmakers, including Nvidia, Intel, and Samsung, are interested in buying Arm’s shares as soon as it becomes available on the stock market. Apple, the largest company in the world, is also among those looking to own a portion of the British chip manufacturer.

Arm aims to welcome the aforementioned tech giants as medium to long-term shareholders and sell them each a stake of a few percent. This decision aims to ensure stock price stability at the time of listing. 

The company is seen as a critical player in the global semiconductor market. After acquiring it in 2016, SoftBank almost sold the company to Nvidia for $40 billion in 2020, but the deal was abandoned due to regulatory scrutiny. Since then, the Japanese investment giant has been trying to take Arm public. 

Arm’s IPO Will Be Largest in 2023

By next month, when Arm is expected to debut publicly, the chipmaker’s market cap is estimated to hit over $60 billion. If so, the listing would be the largest IPO in 2023. 

In particular, SoftBank is looking to float Arm’s shares in mid or late-September. The chipmaker’s market valuation has doubled since SoftBank purchased it for $31 billion seven years ago. 

According to market research firm Refinitiv, Arm’s float will represent the first significant IPO in a year, after French visual effects tech company Technicolor went public in September 2022 in a $97 billion deal. Meanwhile, Chinese technology giant Alibaba is also considering listing its IDCG e-commerce unit in the US for $29 billion. 

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