SoftBank's Sacrifice in Arm IPO Pays Off with Boss's Win
SoftBank successfully orchestrated the IPO of Arm Holdings, raising $4.87 billion and achieving a 25% gain in share price on the first day of trading. However, the company played it safe by pricing the IPO lower than it could have, leaving potential gains of over $1 billion on the table. SoftBank's stake in Arm still increased in value by about $12 billion due to the share price gain. SoftBank's CEO, Masayoshi Son, was determined to secure a win after a series of IPO flops, and despite the unconventional choice of pricing, the IPO is seen as a success in an improving market environment.
