SoftBank Retains 90% Of Arm After IPO: Haas, Son Discuss China Dynamics

Arm Holdings PLC (NASDAQ: ARM) is the talk of the Street Thursday, issuing its initial public offering valued at $54.5 billion, making it 2023's largest IPO.

The semiconductor company, crucial for Nvidia Corp’s (NASDAQ: NVDA) GPUs to facilitate artificial intelligence operations, was acquired by SoftBank Group Corp - ADR (OTCMKTS: SFTBY) in 2016 for $32 billion.

SoftBank chose to retain 90% of the company, releasing 10% of its shares to public investors at the upper limit of the IPO price range, $51 a share.

CNBC interviewed Arm CEO, Rene Haas and SoftBank founder Masayoshi Son, with some conversation centering on the Chinese market.

Haas On China: Highlighting the growth in AI and electric vehicles in China, Haas noted the country's demand for power efficiency and a consistent software ecosystem. He confirmed that Arm's growth in China primarily revolves around data centers and the automotive sector, with 25% of its revenues coming from the country.

Addressing broader challenges, Haas acknowledged some issues in the Chinese market, notably the geopolitical climate.

Son On China: Speaking about SoftBank's stake in a joint venture in China and his perspective on potential risks, given Arm's substantial revenue derived from the country, Son commented on the intricate U.S.-China relations.

He recognized China's global economic influence, saying he hopes for an improved situation, while also voicing his concerns about the uncertain future dynamics between China, the U.S. and the rest of the world.

Son further addressed SoftBank's position, indicating the company decreased its exposure to China.

"Most of the shares in Alibaba from SoftBank have already been sold."

Related Link: Investor Frenzy Over Arm's IPO Pushes Valuation To New Heights, Could Skyrocket To $54B

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