Softbank-owned Arm expects revenue growth of more than 20 percent

This week, Arm semiconductor company, which is owned by Japan’s Softbank, held a series of presentations to investors regarding next week’s stock market listing.

During one such meeting in New York, Bloomberg wrote that Arm’s management said it expects revenue growth of 11 percent in the current fiscal year, as well as an increase of about 25 percent in fiscal 2025.

The growth will be driven by demand for semiconductors that can power data centers and AI-related products.

The company is currently reporting for the 2024 fiscal year ending March 31, 2024. In other words, it is expected to generate revenue growth of about 25 percent through most of 2024.

At a price exceeding $48 billion

Arm announced Tuesday that it is aiming for an IPO price of $47-51 a share, ahead of an IPO next week. This values ​​the company at between $48.22 and $55.22 billion, which equates to between 517 and 561 billion crowns.

That valuation is lower than last month’s deal, which valued the company at $64 billion. The company then announced that it wanted to raise between 8 and 10 billion Norwegian kroner. Despite this, the amounts the company is now trying to raise would still result in the listing being the largest stock market listing of the year.

The company wants to raise $4.87 billion in connection with its stock market listing, and it was known at the end of last week that the company had brought in a number of tech giants as investors, including Apple, Google and Nvidia.

Only 9.4 percent of the shares will be freely traded on the New York Stock Exchange, as SoftBank is expected to own approximately 90.6 percent of the company’s outstanding shares after the completion of the IPO, according to the company. CNBC.

Arm has a virtual monopoly on the data chips used in smartphones, with a market share of more than 99%, according to the Financial Times. The company was acquired and went public by SoftBank for $32 billion in 2016.