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HomeLatest NewsSoftBank will pocket 5.1 billion after Arm's 'rally' in its stock market...

SoftBank will pocket 5.1 billion after Arm’s ‘rally’ in its stock market debut

Date: May 26, 2024 Time: 08:24:48

SoftBank cashes in with the IPO of its subsidiary Arm. The Japanese telecommunications group will earn up to 5,123 million dollars thanks to the reception that the chip manufacturer has had in the market, with a rise of almost 25% in the first session alone to exceed 63 dollars. At the close of the session this Monday it was trading at $58.

The subsidiary of the Japanese telecommunications giant went public last Thursday on the Nasdaq stock index in New York, which concentrates companies and suppliers in the technology sector, and became the largest IPO carried out in the United States so far this year. either .

The group has explained that the money pocketed will be used to recover its reserve funds, which have been eroded by the depreciation of some of the company’s assets during the last two years. In addition, SoftBank has expressed its intention to invest in the emerging artificial intelligence market.

SoftBank bought Arm for 32 billion

Arm, based in the United Kingdom, designs chip parts for almost all current smartphones, as well as Apple computers, Amazon data centers or cars. SoftBank acquired Arm in 2016 for around $32 billion. In 2020, it agreed to sell it to the American company Nvidia for around $40 billion, although the operation was canceled in 2022 after objections from regulators and its competitors.

At the beginning of 2023, it was made public that Softbank was considering listing in the United States to recover its investment in the purchase of Arm, given the higher valuation that American investors give to stocks in the technology sector, which has been experiencing a significant . decline in other regions.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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