Softbank’s Arm is gearing up for a highly anticipated public debut next week, set to become the year’s largest IPO. Jim Cramer voiced his enthusiastic support for the company, predicting an overwhelming demand for its chip designs.
Here’s what you need to know: Arm is eyeing a valuation close to $54 billion for its forthcoming IPO. In its recent SEC filing, the chip design firm revealed plans to offer shares at a price range of $47 to $51, aiming to raise around $5 billion in its initial offering.
Softbank is poised to retain approximately 90.6% of the company’s outstanding shares following Arm’s public listing.
Notably, several prominent companies have expressed interest in acquiring a combined total of $735 million in the IPO, with notable names like Nvidia Corp (NASDAQ: NVDA), Advanced Micro Devices, Inc. (NASDAQ: AMD), and Apple Inc (NASDAQ: AAPL) among them.
Cramer articulated his confidence in Arm’s prospects, highlighting its significant ties to Nvidia. Arm’s CEO, Rene Haas, previously worked at Nvidia, and the chip giant utilizes Arm products in its Grace Hopper superchip, Cramer pointed out.
“I believe that this company is exceptional,” Cramer affirmed. “They are pervasive, especially in the field of AI. They serve as the CPU partner to Nvidia, not AMD, not Intel – and Nvidia is the reigning leader.”
Arm’s highly anticipated public debut is expected to take place around September 13, marking one of the most eagerly awaited listings of 2023.