The upcoming initial public offering (IPO) of Arm Holdings Ltd, one of the biggest anticipated this year, has reportedly earned three major law firms nearly $18 million in legal fees. This information was revealed in a recent filing by Arm Holdings Ltd reported by Bloomberg Law.
Among those managing this significant deal are Morrison & Foerster, Sullivan & Cromwell, and Davis Polk & Wardwell. The exact distribution of the legal fees amongst these firms is yet to be specified. These firms are guiding SoftBank Group Corp. on their strategy to make the chip designer, Arm, public.
The IPO, notably on the Nasdaq exchange, could possibly put Arm’s value around $52 billion. SoftBank has hopes of generating up to $4.87 billion from 95.5 million depository shares. These shares will likely range between $47 to $51 each for the UK chip designer.
Taking the legal lead for Arm in the IPO is Morrison & Foerster, the company’s longtime outside legal adviser. Sullivan & Cromwell is providing advice to SoftBank, while Davis Polk lawyers are in collaboration with the deal’s underwriters. This group of underwriters includes names like Barclays Plc, Goldman Sachs Group Inc., JP Morgan Chase & Co., and Mizuho Financial Group.
This IPO follows an erstwhile proposal for SoftBank to sell Arm to Nvidia Corp for $40 billion. That particular deal was called off last year due to scrutiny from antitrust regulators. Arm was previously a public company until 2016 when SoftBank purchased it for $32 billion.