Arm IPO: everything you need to know and how to buy Arm stock
The Arm IPO is planned for 13 September. The microchip designer has priced its IPO at $47-$51 per share.
Arm has been a key player in computing since the days of PlayStation One and the Gameboy Colour. Its first Initial Public Offering on the London Stock Exchange in 1998 came five months before the founding of Alphabet, when only 29% of UK households owned a personal computer.
When will the Arm IPO take place and what will the share price be?
The Arm IPO will take place on 13 September. They have set the IPO price between $47 and $51.
UK investors can't participate in the IPO (ie. subscribe to the offering), however you will be able to buy or trade shares with us on the day of the listing.
|IPO date||13 September 2023|
|IPO price range||$47-$51|
|Country of listing||US|
Buy Arm shares: how to trade or invest in the Arm IPO
We'll offer Arm shares to buy right away on 13 September when the IPO takes place. You can:
- Invest and own Arm shares with share dealing from zero commission
- Trade Arm stock either with spread bets and CFDs, please note that the ability to short Arm will depend on the availability of borrow.
As it's a US IPO, it may take a few hours for the shares to be available to trade (as with all US listings for all brokers) after market open. We'll offer investing in ARM shares from £0 commission if you've traded 3+ times in the previous calendar month. Our standard rate is £10.
If you'd rather trade the stock with derivatives, you can do so commission and tax-free with spread bets, or for $15 commission with CFDs.
Just bear in mind that spread betting and CFD trading is leveraged - this means that you'll only need a fraction of the total trade size to open your position, but your profit and loss will be based on the full position size. This means you could stand to gain or lose money much faster than you'd expect.
Find out more about IPO trading with us, or learn how to take a position before, during and after an IPO
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Arm IPO: what makes Arm special?
Arm doesn’t manufacture microchips. It designs them. And then it licences out these designs to other companies. For example, the flagship Apple M1 and Samsung Exynos 2200 chips are based on Arm chip architecture.
And it’s hard to overstate just how widespread the company’s designs are. Televisions, smartphones, drones, smart homes, smart cars, wearable tech, and electronic passports all use its technology— almost anyone who uses the internet is exposed to an Arm product every single day.
For context, the company boasts that ‘if the 200 billion Arm-based chips shipped by our partners over the past three decades had been produced at a rate of only one per second, the first would have rolled off (in) 4,300 BCE.’
And amid the ongoing global microchip crisis, Arm’s political, economic, and strategic importance has become more significant than ever.
Arm IPO: a spanner in the works
Nvidia CEO Jensen Huang still expects ‘Arm to be the most important (CPU) architecture of the next decade.’ But while Son wants to launch ‘plan B’ during the next financial year, he faces a hurdle and a choice.
Before Softbank can launch a new IPO for Arm, it will have to resolve an internal dispute with the head of its joint Chinese venture, Allen Wu. While the Arm China board voted to remove him in 2020, he refused to stand down and retains control due to his legal rights. Wu has launched legal action against Arm China, with a view to reappointment to the board.
Arm holds a 47% stake in the joint venture, and it contributes to a fifth of global sales. Worryingly, CFO Inder Singh has confirmed that he is currently unable to audit the venture’s accounts. He makes clear that it’s ‘important for us to make sure that we have certain rights that will be important for our financials (and) one of those will be the continuing right to audit revenues.’
Where will Arm shares list?
There was much discussion around whether Arm would list in the UK or US, but they have opted for a US listing.
SoftBank's Masayoshi Son previously told reporters ‘The NASDAQ stock exchange in the US, which is at the centre of global high tech, would be most suitable for a listing.’ However, the UK government was also keen to court Arm. In 2021, market rules were reformed to attract tech IPOs by allowing dual-class share structures and reducing the number of shares required to be offered to the public to 10%. Extra concessions are not unimaginable.
Janus Henderson’s Richard Clode thinks that US-listed semiconductor stocks such as AMD, Intel and Nvidia have been on a ‘tremendous run.’ Nvidia is now the seventh most valuable company in the US. And Clode argues that ‘growth semiconductors in the US now enjoy valuations well ahead of similar growth semiconductor franchises in Europe or Asia.’
And Apple alone is worth more than the entire UK index. Other NASDAQ companies like Microsoft, Amazon and Alphabet are all worth over $1 trillion. London-listed tech firms are minnows by comparison. And the NASDAQ hosted 753 IPOs in 2021, raising $181 billion of capital. Rivian alone amassed $12 billion and was the largest US IPO since Alibaba in 2014.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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