Weekly Market Update - 6 March 2023
Arm IPO Listing
SoftBank’s Arm is seeking to raise at least $8 billion in a US initial public offering, Reuters reported. The British chip designer is expected to confidentially submit paperwork for its IPO in late April with the listing expected to take place later this year. The size of the listing would make Arm one of the largest IPOs in the US of the last decade. It ruled out the UK, despite having its HQ in Cambridge, England. Bankers had pitched a valuation of $30 billion to $70 billion for the listing, Bloomberg reported last week, a wide range that underlines the challenges of valuing the firm against a backdrop of volatile semiconductor equity prices.
Source: Bloomberg
Reshuffle In China
China is about to see its biggest reshuffle in decades as a generation of internationally respected economic officials makes way for a clutch of politicians better known for strong ties with President Xi Jinping than academic credentials or overseas exposure. That prospect is ratcheting up anxiety from Wall Street and Washington to the UK and Japan, with concerns the new lineup will prove to be Xi yes-men who take China further toward state intervention and international isolation.
But there’s an alternative take. Whisper it quietly, but perhaps trust from the top, experience toughing it out in China’s fierce political system and a pragmatic approach to policymaking are more important than rigid adherence to the economics textbook. If that’s the case, the new team may turn out to be better placed than their predecessors to push through the painful reforms China now needs.
Source: Bloomberg
Singapore Permanent-Resident Status
Singapore is increasing the threshold for global investors seeking permanent-resident status in an attempt to create more jobs and benefit locals due to an influx of wealth. Applicants will need at least S$10 million ($7.4 million) in a business or S$25 million in an approved fund, the Singapore Economic Development Board said. For those establishing family offices, at least S$50 million must be deployed. That compares with a previous requirement of a S$2.5 million investment in a business entity, fund or Singapore-based single family office.
Source: Bloomberg