Arm, the British company that designs chips and owned by SoftBank, has decided to go public with an IPO. This comes after their previous plan to merge with Nvidia fell apart a few years back.
What's interesting is that unlike many other companies looking to go public, Arm is actually making good money, even though its growth has been slow lately.
This IPO matters a lot to SoftBank, which invested a lot of money to buy Arm. It's also important for the overall market and startups in particular, even though Arm isn't a typical startup.
Here's why it matters: Right now, both investors who provide money and the people who start companies are finding it hard to turn their investments into liquidity. This IPO could help fix that problem. If the stock market reacts positively to Arm's IPO, it could make other companies more confident about going public too. This would be especially great for all those startups that are currently stuck being privately owned.
However, if Arm's IPO doesn't go well, it could make startups nervous about going public, and they might choose to stay private. So, a lot is riding on how well Arm's IPO does.
The big question is whether investors will like what Arm is offering. We'll have to wait and see.
The Bear and Bull Cases For ARM’s IPO (TechCrunch)
The Global Chip Race: Nvidia's Trillion-Dollar Valuation, ARM's & IPO's (Cyber News Center)