While dabbling in individual stocks is a notoriously risky business for amateur investors, an analysis underscores just how perilous it can be to buy into blockbuster IPOs on Day One.
Arm IPO: That price range values Arm at $50 billion to $54.5 billion on a fully diluted basis. This would represent a climb-down from the $64 billion valuation at which SoftBank last month acquired the 25% stake it did not already own in the company from the $100 billion Vision Fund it manages.
Arm told potential investors in New York on September 7 that the cloud computing market, of which it has only a 10 percent share and therefore more room to expand, is expected to grow at an annual rate of 17 percent through 2025, partly thanks to advances in artificial intelligence.
The American CEO of Arm, a British company owned by a Japanese tech conglomerate, must juggle the needs of chip-making customers who are battling each other.
Arm IPO: While some investors and bankers that Reuters spoke with after the presentation were upbeat, it remained unclear how strong the IPO s reception would be. Arm has already secured the participation of several customers, including Apple Inc , Nvidia Corp and Alphabet Inc, as investors in the IPO. It is scheduled to close the books and price the offering on Sept. 13.