Arm IPO: China is huge for the SoftBank-owned company. That’s a risk for its new investors
Hong Kong
CNN
—
As British chip designer Arm prepares to raise about $5 billion in an initial public offering (IPO) on Thursday, its China business has become a serious point of concern.
The SoftBank-owned firm used many pages of its IPO prospectus to warn investors of risks related to its exposure to China at a time of rising tension between Washington and Beijing over chip technology.
Its regulatory filing last month revealed that a quarter of its sales come from China, through an unusual relationship with an entity it does not control and with which it has a complex history.
Arm China is “an entity that operates independently of us and is our single largest customer,” the company s...