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Arm’s IPO Gains Strong Backing from Industry Giants

According to insider sources, Arm's upcoming initial public offering (IPO) has attracted significant support from tech industry leaders such as Apple, Nvidia, Intel, and Samsung. SoftBank Group, Arm's parent company, is preparing for the IPO, which is anticipated to have a valuation of $60 billion to $70 billion.

Major technology firms that are also Arm licensees, including Apple, AMD, Cadence, Intel, Google, Nvidia, Samsung, and Synopsys, have reportedly endorsed the IPO and may invest between $25 million and $100 million each. This indicates their confidence in Arm's potential in the chip industry.

Initially, SoftBank aimed to raise $8 billion to $10 billion through the IPO. However, after a strategic decision to retain a larger share of Arm, this target was adjusted to $5 billion to $7 billion. SoftBank's recent acquisition of the Vision Fund's stake in Arm solidified the company's valuation at $64 billion.

The success of Arm's IPO is crucial for SoftBank and its CEO, Masayoshi Son. After suffering a $30 billion loss in the previous fiscal year, a successful IPO could be a much-needed win for the conglomerate. Additionally, a favorable listing for Arm could inspire other companies like Instacart, Klaviyo, and Birkenstock to consider their own public offerings.

Masayoshi Son is reportedly keen on maintaining significant control over Arm, intending to release no more than 10% of the company during the initial phase. This aligns with SoftBank's recent decision to acquire the Vision Fund's stake, demonstrating their belief in Arm's long-term prospects.

To facilitate the IPO, Arm has enlisted the services of renowned financial institutions such as Barclays, Goldman Sachs Group, JPMorgan Chase & Co, and Mizuho Financial Group. These partnerships highlight Arm's global appeal and the potential financial gains anticipated by the banks involved.

Sources:
– Bloomberg report
– Insider sources