Arm IPO

14th Sep '23 by WealthRoad

9 comments 731 reads

Pleased to see the placeholder is here for Arm Holdings (NSQ:ARM) in advance of today's IPO; shame known data isn't shown e.g. prospectus gives revenues at $2.68bn, net income in fiscal year 2023 down 22% to $524million, PE of 104 (NVDA TTM PE is also 104(!)). Makes me appreciate how much I use Stockopedia! So even if it rises on initial frenzy (probable), would seem unsustainable given current metrics...wondering whether to try get in early or wait until dust settles as seeing it as a long term play. Ironic its PE's shoulder-to-shoulder with NVDA who almost bought the company not long ago...

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About the Author

WealthRoad

Premium Member

9 comments

Rusty2

14th Sep '23

Do you know why Arm Holdings (NSQ:ARM) shares are not eligible for ISAs? Can buy in a SIPP apparently.

stehuk

14th Sep '23

According to a Trading212 guy, "the instrument is not eligible to be held in an ISA. Arm Holdings PLC is traded as depository receipts on NASDAQ, and the underlying parent company is not listed on a recognized exchange, hence why the instrument does not adhere to HMRC’s guidelines for ISA eligibility."

WealthRoad

14th Sep '23

HMRC rules, think it's because shares are registered in the UK though they trade on the NASDAQ so don't meet ISA rules.

For a SIPP, because they're registered in the UK, can buy them without completing a W-8BEN form.

My early morning buy limit order triggered at open of public trading just after 5pm UK time, so pleasantly amazed it went through at open price...great to see them back on the market...

WealthRoad

14th Sep '23

Interesting price action in last hour...straight up, ending almost +25% and still rising in after market, now over $65bn market cap.

Alphaflight

15th Sep '23

Now that China has just proved they can make their own high end cell phone chips for the new Huawei Mate 60 Pro phone, I do wonder about the likes of Qualcomm, Intel, Nvidia, Arm etc.

These US chip related sanctions have, in my opinion anyway, completely compromised the strangle hold previously held by western chip makers. Time will tell if I'm right.

Source - Reuters: China's chip breakthrough

rmillaree

15th Sep '23

Great point Alphaflight - in some respects its possibly surprise that the big boys have maintained their competitive advantage so long even without the nned for china to go iot alone - eg do it cos they could rather than do it cause they need to. I suspect for the vast majority of stuff something 2-3 year old will probably do the job and if it inst the wait shouldnt be too long. Who knows though my thoughts are very much uninformed pub crap talk.

Alphaflight

15th Sep '23

Hi rmillaree.

There are some seriously impressive Chinese chip companies. For example, if you are interested in electronics, you'll have heard of the ESP8266, ESP32 etc series. Espressif Systems produce the best microcontrollers in the world - a game changer for cheap IOT technology. Unfortunately westerners can't buy shares on the Shanghai stock exchange or I'd buy it hand over fist. Espressif Systems (Shanghai) Co., Ltd. (688018.SS)

WealthRoad

16th Sep '23

Looking forward to seeing the Arm data appear on the StockReport screen. Anyone know how long it takes?

Free float is a mere 9.3%, so excludes it from inclusion in most ETFs, as usual minimum is 10%. NASDAQ-100 has no minimum, so could be end up there, will learn in December when it's reconstituted. Also, Arm can't be included in the S&P 500 as it's registered in the UK. Not a fan of ETFs personally so not bothered bar another source of demand. SoftBank can always allot more shares to get over the min if they chose. Given most of Arm's management became US-based, wonder if the company eventually will as well to make such things simpler.

And if cornerstone investors (AAPL, NVDA etc) have a chunk of shares, the true free float must be even smaller for retail investors. Anyway, be good to see the figures.

simoan

16th Sep '23

For example, if you are interested in electronics, you'll have heard of the ESP8266, ESP32 etc series. Espressif Systems produce the best microcontrollers in the world - a game changer for cheap IOT technology.

I’m sorry, but as someone that worked in the electronics industry, this is simply not true. There is nothing special about these products. What does this chinese company do that Microchip Technology hasn’t been doing for the past 20 years? And Microchip is just one of many US and European low power microcontroller makers, many of whom use ARM. And if you think western companies are going to build a no-mark Chinese chip that connects freely to the internet into their products, you’ve not been reading the runes.

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Arm IPO

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About the Author

WealthRoad

9 comments

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