(Boursier.com) — Mark Liu, president of Taiwan Semiconductor, indicated today that the company will decide during the week whether or not to invest in the IPO of chip designer Arm Holdings. The Arm IPO should be done at a much more reasonable price than initially expected, despite the current euphoria around artificial intelligence which has tended to boost sectoral valuations. According to Bloomberg calculations and recent documents, Arm’s valuation would be close to $55 billion at the time of the IPO, much lower than initial reports which suggested a level of $70 billion. It must be said that Arm is far from being a ‘pure player’ IA, the group drawing a large part of its income from mobile.
SoftBank and its founder Masayoshi Son had nevertheless demonstrated a nice sense of timing by choosing to introduce Arm in New York during this euphoric period, which brought the capitalization of a Nvidia on the 1.200 billion dollars, unprecedented in the sector… The final price of the IPO and the amount raised will depend on investor demand at the end of the roadshows. SoftBank will still hold nearly 90% of Arm’s capital at the end of the operation.
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