Can Arm IPO happen in 2022? All you must know

3 min read | January 31, 2022 06:07 AM EST | By Raza Naqvi

Can Arm IPO happen in 2022? All you must know — Image source: © Pichetw | Megapixl.com

Arm the IPO on the cards?

There is no official confirmation on the deal cancellation between NVIDIA and SoftBank. In addition, there is no announcement from SoftBank about Arm IPO.

There are only speculations at the moment, suggesting that NVIDIA will not acquire the Cambridge-based semiconductor and software design company.

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Before the speculations, the NVIDIA-SoftBank deal faced hurdles from regulatory authorities. According to the Federal Trade Commission (FTC) website in the US, it filed a law enforcement action in December to block NVIDIA's deal to acquire Arm for US$ 40 billion, the largest transaction in the semiconductor industry history.

The FTC wanted to block this deal to preserve competition in markets for computer chips used for various purposes in the modern age.

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In October 2021, the European Commission launched an in-depth investigation to assess the proposed acquisition deal. The commission mentioned that the transaction could lead to higher prices and lesser innovation in the semiconductor industry.

Bottom line

In 2020, the S&P Global Market Intelligence report said that SoftBank was looking to relist Arm Limited or sell the company to a potential buyer.

The company's chief executive officer (CEO) Masayoshi Son had then said that Arm IPO was an option, and selling it whole or part was also one of the options.

If speculations are true and NVIDIA is no longer acquiring the company, then there could be a possibility that SoftBank could explore public debut plans.

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