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Viewsroom

Arm’s IPO valuation rests on big dose of hope

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 7 September 2023

⏱️ 16 minutes

🧾️ Download transcript

Summary

The SoftBank-owned chip designer is getting ready to list. In this Viewsroom podcast, Breakingviews columnists argue that even the company’s reduced price tag of $50 bln is still far too high, and debate what investors would have to believe to buy the shares. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:30.3

The views expressed on this podcast are those of the participants, not of Rorges News.

0:46.3

I mean, I think what's really important to know about this IPO is it's kind of true for all IPOs that, you know, you're buying something on faith a little bit. It hasn't been in the public markets for, you know, ages and ages.

0:50.3

There's a lot of stuff that you have to sort of take a punt on.

0:53.3

But that's

0:54.8

especially true with Arm. Arm is finally ready to list its stock in the US. The equity valuation

1:01.6

could be as low as $50 billion, considerably below what had been expected. The implications of this

1:08.2

lowball valuation on its current owner SoftBank and the wider IPO market is the focus of this week's Viewsroom.

1:17.1

Welcome back to the Viewsroom, a podcast from Reuters breaking views where columnists from around the world talk about the big stories of the week.

1:24.0

I'm your host, Amy Donnellan, coming to you from London.

1:28.8

Arm is the hot topic in the global IPO market. It is all the ingredients for a gripping drama,

1:35.3

an interesting seller in Japan's soft bank, as well as debate about what the company is worth

1:40.2

today versus its potential. And here to unpick all of these elements is Liam Proud,

1:45.9

an editor at Breaking Views, and Karen Kwok, our technology expert.

1:56.6

Liam, Karen, you are very welcome. Great to be here. Well, listen, it's been less than a month since

2:02.9

we looked at Arm, but as I said, this is a massive IPO that is happening. The IPO market has been

2:09.9

pretty lackluster. So definitely an interesting one for our listeners and for investors that are

...

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