Arm Holdings
shares were falling again early Tuesday as they fell back toward their opening price at the company’s initial public offering. While investors cooled toward the chip-design firm, majority owner
SoftBank Group
was counting its gains.
Arm
(ticker: ARM) traded down 2% at $56.85 in premarket trading. Having reached more than $65 a share in the initial trading after its IPO last Thursday, it’s now closing in on the opening price of $56.10.
That’s not much of a worry for
SoftBank
(9984.Japan), which said Tuesday that it would receive $5.12 billion in proceeds from the 10% stake it sold in Arm as part of the offer. Arm’s stock price remains well ahead of its initial $51-a-share pricing and SoftBank has said it intends to remain the long-term owner of the company.
The offer proceeds will be a boost to SoftBank’s coffers for further investment, while the successful IPO of Arm is likely to improve sentiment around the possibility of further listings. SoftBank has recorded a series of hefty losses on its Vision Funds business, which holds the world’s largest venture-capital portfolio.
SoftBank doesn’t look to be wasting any time in making a new series of investments focusing on artificial-intelligence technology. The Japanese company is leading a $280 million funding round in U.S. location-mapping company Mapbox at a valuation of around $1.3 billion, the Financial Times reported Monday, citing people close to SoftBank.
Write to Adam Clark at [email protected]
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