Son Jeong-ui, 'Semiconductor Giant' ARM Officially Heads to Nasdaq

SoftBank Chairman Masayoshi Son is set to officially announce ARM's Nasdaq listing in the United States this week and plans to begin preparations for the initial public offering (IPO) within months, major foreign media reported on the 11th (local time).

According to multiple sources cited by foreign media, Chairman Son is expected to officially agree with the U.S. Nasdaq Stock Market and ARM's Nasdaq listing this week.

ARM, a British semiconductor design (fabless) company and a subsidiary of Japan's SoftBank, initially pursued a dual listing on both the U.S. and UK stock exchanges but recently shifted its focus to a sole listing on the U.S. stock market.

Ren?e Haas, ARM's Chief Executive Officer (CEO), stated last month, "We have decided that pursuing a listing solely in the U.S. this year is the best path for the company and its shareholders," formalizing the plan for a U.S.-only listing.

The decision for a U.S.-only listing is known to strongly reflect Chairman Son's intentions. He believes that the U.S. stock market has a more solid investor base and is more favorable for achieving a higher corporate valuation compared to the UK market.

Following ARM, joint lead underwriters including Goldman Sachs, JP Morgan, and Barclays have been selected, and discussions are underway regarding the listing review application and future schedules.

The market expects ARM to raise at least $8 billion (approximately 10.38 trillion KRW) through this Nasdaq listing.

[Image source=Reuters Yonhap News]

Headquartered in Cambridge, UK, ARM holds core technologies in semiconductor design that serve as the "brain" of IT devices such as PC central processing units (CPUs) and smartphone application processors (APs). SoftBank acquired ARM in 2016 for $32 billion.

In September 2020, SoftBank attempted to sell ARM to U.S. semiconductor company Nvidia for $40 billion. Nvidia was eager to acquire ARM to strengthen its server CPU development capabilities and expand its artificial intelligence ecosystem, but the deal was ultimately blocked by regulatory authorities citing concerns over "neutrality impairment."

Subsequently, Intel, Qualcomm, SK Hynix, and others expressed interest in participating in a consortium to acquire ARM, but the deal did not materialize. After failing to sell ARM, SoftBank ultimately shifted its exit strategy to an IPO.