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Speaker 1: From the heart where innovation, money and power collie in

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Speaker 1: Silicon Valley n beyond. This is Bloomberg Technology with Caroline

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Speaker 1: Hide and Ed Loudlow.

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Speaker 2: I'm Shnalli Bassik at Bloomberg's world headquarters in New York.

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Speaker 2: Ed Ludlow is off today and Caroline Hyde is live

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Speaker 2: at the Nasdaq.

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Speaker 3: This is Bloomberg Technology. Coming up.

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Speaker 2: We are alive from NAZAK to bring you full coverage

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Speaker 2: of the ARM IPO as it makes us trading debut

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Speaker 2: as the biggest.

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Speaker 3: IPO of the year.

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Speaker 2: More ahead and as ARM makes his trading debut, will

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Speaker 2: push ahead to the other companies lining up to go public.

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Speaker 2: During our venture capital squadline, we'll also look at the

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Speaker 2: prospects and use case for digital dollars with former head

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Speaker 2: of the CFTC Chris John Carlow.

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Speaker 3: All that and more coming up next.

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Speaker 2: Now before we head over to the az DEC, we're

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Speaker 2: Caroline hied Is standing by with a very senior executive.

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Speaker 3: We are also.

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Speaker 2: Getting indications that ARM may open shortly in the next

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Speaker 2: ten to fifteen minutes. We are getting price indications of

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Speaker 2: about fifty six dollars give or take fifty six thirty

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Speaker 2: That would give the firm evaluation of about sixty billion dollars.

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Speaker 3: Let's see where were head though, Caroline.

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Speaker 2: We are heading over now to Caroline and Karen s

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Speaker 2: Now Senior VP and Global head of Listings over at Nasdaq.

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Speaker 4: Shanani, thank you so much, and yes I am sat

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Speaker 4: here with Karen and wow, we're back at it.

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Speaker 5: We've almost forgotten.

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Speaker 6: How's IPA.

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Speaker 7: It's very exciting.

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Speaker 4: How important is this ARM listing for the rest of

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Speaker 4: the companies that now stand to list. I think you

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Speaker 4: were saying, what one hundred and fifty seven of their

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Speaker 4: waiting to come to the market.

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Speaker 7: It's important, it needs to trade well. I think that.

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Speaker 8: This is a moment in time that everyone is really

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Speaker 8: paying attention to. The markets have been open for great

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Speaker 8: companies for some time now when you look at the

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Speaker 8: VIX and the second market and what we're seeing in

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Speaker 8: the private markets, but it's really been on the supply side,

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Speaker 8: and ARM is really set to unlock that.

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Speaker 4: What's so interesting about ARM is how idiosyncratic it is

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Speaker 4: or not, because many want this to be a bell weather.

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Speaker 4: It's in the tipping point of AI, also China or anxiety.

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Speaker 4: But what's so interesting is it's only a little free

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Speaker 4: flowt less than ten percent? How easy or heart is

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Speaker 4: it therefore to square up demand as apply at this moment?

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Speaker 4: Is anyone going to want to be a seller? What's

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Speaker 4: happening behind the scenes.

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Speaker 8: Yeah, well that is why it's taking a little bit

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Speaker 8: of time to open. It's really important to get the

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Speaker 8: opening cross right. And one of the things that we

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Speaker 8: do is we provide technology to the person opening the stock,

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Speaker 8: and that's JP Morgan.

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Speaker 7: In this case. It's called a stabilization.

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Speaker 8: Agent, and we've turned it into more of a science

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Speaker 8: than an art. There still is an art, though, and

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Speaker 8: you want enough buyers and sellers in that opening cross

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Speaker 8: to price the opening at a level that it'll trade.

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Speaker 4: Well when you have that sort of technology is that's

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Speaker 4: what wooing the likes of arm the likes of instacart

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Speaker 4: are looking to come with an ASDAC as well. How

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Speaker 4: do you set yourself apart from some of the other

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Speaker 4: exchanges in this moment right.

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Speaker 7: Well, it is a part of it. I would say.

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Speaker 8: We do find that the underwriters have more information and

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Speaker 8: that's really helpful to them.

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Speaker 7: But there are other factors.

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Speaker 8: Obviously, I would say brand alignment is really important. The

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Speaker 8: fact that we have owned and operate or differentiated services,

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Speaker 8: So we really build relationships with our companies throughout their

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Speaker 8: life circle.

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Speaker 4: At the moment the pushes in the polls of deciding

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Speaker 4: to go public in general, I mean I cast my

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Speaker 4: mind back to when arm first went public back in

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Speaker 4: the nineties. There were a lot more companies that were

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Speaker 4: public at that point. There's been this sort of desire

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Speaker 4: to be away from the duties that you have to shareholder,

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Speaker 4: the costs. How does it look as a company looking

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Speaker 4: to go public at the moment?

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Speaker 3: Is it desire?

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Speaker 7: We would say so, and we do a lot of work.

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Speaker 8: With the SEC and advocacy work on behalf of our

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Speaker 8: issuers really around that, because our objective is to keep

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Speaker 8: We want high quality companies coming, but we want to

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Speaker 8: focus on the issues that are really important and we

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Speaker 8: want the cost to remain reasonable for companies.

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Speaker 3: To that end.

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Speaker 4: So when they're looking at compliance costs, they're looking at

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Speaker 4: volatility more broadly in the market. You said that looks

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Speaker 4: pretty good at the moment, vicks remaining low. What therefore

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Speaker 4: could be the catalysts into twenty twenty four, When are

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Speaker 4: we going to see windows open and closed?

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Speaker 8: You think, yeah, well, I think ARM is likely to

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Speaker 8: open a window here, and I think a lot of

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Speaker 8: companies are ready to go public. Q four will probably

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Speaker 8: be a lot more interesting, and a lot of companies

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Speaker 8: want to go in the first half of twenty four,

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Speaker 8: really getting ahead of the election.

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Speaker 4: Okay, so there's sort of political risk within that at

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Speaker 4: this moment, there's geopolitical risk and it's interesting that, of

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Speaker 4: course ARM has expo exposure.

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Speaker 7: To China a head of global listings.

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Speaker 4: How are you seeing the overall pushes and pulls of

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Speaker 4: the global narrative right now?

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Speaker 8: Yeah, Well, there's a lot of interest from global companies,

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Speaker 8: a lot of interest from Chinese companies listening in the US,

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Speaker 8: Latin America Emia. The market's really open in the United

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Speaker 8: States and it's very recognized.

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Speaker 4: I mean, the LSE recognizes this at this moment because

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Speaker 4: it was It's a bit of pill for the London

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Speaker 4: Stock Exchange to swallow today that they didn't manage to

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Speaker 4: woo on there, given it's a UK based company. But

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Speaker 4: I'm interested. You say, China and companies still want to

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Speaker 4: come here. Are they not worried in any way about

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Speaker 4: the closing of investor base to China, particularly in this

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Speaker 4: current political environment.

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Speaker 8: Yeah, I would just say it's a tricky time. But

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Speaker 8: I think everyone recognizes that the US markets are the

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Speaker 8: most liquid and everyone has to consider them when they're

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Speaker 8: going public, regardless of where they are in the world.

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Speaker 4: When we're looking at the companies that could come after

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Speaker 4: in the next week, all so the instacrats, the clear views,

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Speaker 4: I'm interested in. What is the recipe is a company

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Speaker 4: having to demonstrate profit growth, having to demonstrate revenue growth

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Speaker 4: to be able to access the market right now?

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Speaker 8: I would say yes to both of those, and they

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Speaker 8: also have to be priced at evaluation that accommodates for

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Speaker 8: that growth or not. What about the overall desire?

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Speaker 4: It feels like of Masiyoshi's son himself not wanted to

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Speaker 4: go to the very top of a range he could

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Speaker 4: have done. Did that speak to wanting to ensure that

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Speaker 4: this share pop and what is the perfect price point

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Speaker 4: there for? How do you see that art rather than science.

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Speaker 8: I think his view is long term, right, It's the

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Speaker 8: right thing to do for the long term, and I

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Speaker 8: think you'll find that investors love to what we call

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Speaker 8: it get a little bit of a kiss, and that

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Speaker 8: not every dollar that could have been taken is taken

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Speaker 8: by the company an ARM of course, is thinking about

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Speaker 8: this for the long hole.

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Speaker 4: In many ways, ARM has gone against the grain. They've

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Speaker 4: had a democratization of the banks in the way in

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Speaker 4: which they've been underwritten. But they've also ensure that there

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Speaker 4: are those lynchpin investors, the apples, are tsmcs, the intels

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Speaker 4: who are brought up this stock. Does that make it

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Speaker 4: a recipe for others to try and follow suit in

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Speaker 4: that way? How difficult is it to replicate?

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Speaker 8: Well, there's a lot of different factors that go into

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Speaker 8: a company's decision and how they put their book together,

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Speaker 8: who their partners are. There's no one recipe that works

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Speaker 8: for everybody, is what I would say. It really depends

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Speaker 8: on the company, the advice that they're getting, and the

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Speaker 8: decisions that they decide to make around that.

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Speaker 4: And interesting, of course, ARM is very much a B

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Speaker 4: to B play. We're going to see some more B

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Speaker 4: two C names. Retail investors become important At that moment

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Speaker 4: we think back to the mean stock crazes and the

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Speaker 4: heavy days of twenty twenty to one. Will the retail

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Speaker 4: investor be is crucial going into this next era of

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Speaker 4: IPO opening.

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Speaker 8: Yeah, I wouldn't say that they're crucial, but they What

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Speaker 8: is important to recognize about the retail investor is they

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Speaker 8: weren't an important part necessarily for a long period of time.

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Speaker 8: They've become much more active, and I think it's exciting

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Speaker 8: and it does democratize the process and everyone's able to participate,

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Speaker 8: and so many more people got educated or took the

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Speaker 8: time to get educated about the public markets and what

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Speaker 8: that can really mean about your overall wealth.

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Speaker 4: Karen Snin has been so wonderful hosting us here. Thank

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Speaker 4: you very much. Indeed, thank you. It's great to have

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Speaker 4: me a VP who's head of global listings right here

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Speaker 4: than Nasdac Shanani Thatti.

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Speaker 2: That's Bloomberg's Caroline hyd and Karen Snow, senior VP and

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Speaker 2: global head of Listings at Nasdaq.

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Speaker 3: Thank you both.

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Speaker 2: Now let's turn to our own Bloomberg intelligence analyst, Kunjon

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Speaker 2: Sabani for more on today's ARM listing. What's interesting to

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Speaker 2: me is that if you look at the price indications

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Speaker 2: at about fifty six dollars per share, that implies a

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Speaker 2: valuation about sixty billion dollars dollar. Does ARM have a

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Speaker 2: growth rate that justifies that type of a price tag.

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Speaker 9: Well, not in the near term, but definitely in the

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Speaker 9: long term. The evaluation implies that investors are underwriting the

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Speaker 9: long term growth that it is expected to achieve from

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Speaker 9: the fast growing markets of data center, AI and automotive,

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Speaker 9: but the company is just getting started.

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Speaker 2: For to scare the company, we actually are going to

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Speaker 2: go to the ARM holding's actual price for a second

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Speaker 2: before we get back to you on the valuation, because

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Speaker 2: we are getting ARM trading live at fifty six dollars

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Speaker 2: and ten cents a share, that is more than five

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Speaker 2: dollars above its IPO price.

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Speaker 3: There is your IPO pop that you're seeing for ARM holdings.

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Speaker 2: Remember this is a fairly thin float that you were

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Speaker 2: seeing for ARMS. So it did take a couple of

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Speaker 2: hours to get the first trade moving for the underwriters

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Speaker 2: and stabilization agent to.

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Speaker 3: Make sure that the book was built just in time.

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Speaker 2: And it is just about a smooth a day for

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Speaker 2: an IPO in a year.

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Speaker 3: Where we've had virtually no IPOs.

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Speaker 2: At fifty six dollars and ten cents a share, you

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Speaker 2: are looking at a company that is worth about sixty

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Speaker 2: billion dollars. That is about fifty nine billion fifty nine

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Speaker 2: point nine billion dollars in terms of valuation for ARM.

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Speaker 2: We're going to turn out to Bloomberg's Abigail Doolittle to

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Speaker 2: put this into perspective for us as we look for.

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Speaker 3: A landmark day this year for ARM and the IPO market.

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Speaker 10: Absolutely, Shanali and we do have a nice pop here

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Speaker 10: for ARM right now trading higher by about nine point

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Speaker 10: four percent. Of course, priced at fifty one dollars, there

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Speaker 10: was the possibility that they were going to price it

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Speaker 10: at fifty two, fifty three to fifty four dollars, but

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Speaker 10: CEO Maciosa's son wanted to make sure that they weren't

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Speaker 10: too greedy, and it seems like he and the bankers

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Speaker 10: did a good job right now ten percent above raising

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Speaker 10: the valuation on the actual IPO price at fifty one

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Speaker 10: dollars at fifty four point five billion dollars, and of

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Speaker 10: course this is the biggest IPO of the year. And

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Speaker 10: the reason that matters is because back in last year

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Speaker 10: there was rough one hundred and seventy nine billion dollars

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Speaker 10: raised through the public markets. This year or the year

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Speaker 10: prior to that, six hundred and thirty, there's been a

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Speaker 10: drought this year, So the big question is is this

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Speaker 10: IPO Will it stay successful through the close? Right now

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Speaker 10: it looks very positive. Is it going to provide the

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Speaker 10: support for Instacart next week along with clave Io and

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Speaker 10: more importantly Shanale going.

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Speaker 3: Into next year twenty twenty four?

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Speaker 10: Is it going to create what investors, companies, bankers want

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Speaker 10: to see relative to having the confidence that big, some

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Speaker 10: big tech IPOs can go. Of course, we've had the

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Speaker 10: setting over the last twelve months so of rise and

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Speaker 10: rates inflation that makes some of these growth stocks riskier

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Speaker 10: IPOs maybe less attractive. So again, right now we are

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Speaker 10: looking at a positive opening here for arm holdings up

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Speaker 10: nine point eight percent, an impressive IPO start right here on.

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Speaker 2: The day, certainly about ten percent. That is a very

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Speaker 2: healthy little pop you get there from the lights of

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Speaker 2: Golden and JP Morgan Mazoojo Hall underwriting the deal alongside

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Speaker 2: Barclays and the twenty some other banks involved in the deal.

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Speaker 2: We're going to turn back now to Kunjohn's Kunjohn soa

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Speaker 2: Bannie of Bloomberg Intelligence, to talk more about the evaluation here,

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Speaker 2: because you are looking at a company at sixty billion

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Speaker 2: dollars on its first day in public markets after its

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Speaker 2: ownership of after its soft bank ownership, and that implies

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Speaker 2: a twenty two point four times multiple two it's trailing sales.

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Speaker 3: What does that mean to you?

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Speaker 9: I mean, this is definitely in the premium and along

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Speaker 9: with the semi design ippers and sort of the AI

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Speaker 9: companies like in media. Like I was saying, it seems

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Speaker 9: the investors are underwriting the future growth coming from these

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Speaker 9: markets rather than the current revenue composition, which is heavily

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Speaker 9: based on smartphone and consumer electronics.

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Speaker 2: It's also a good day. Let's talk about that. It's

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Speaker 2: a good day in the Market's Kanjohn, And so they're

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Speaker 2: getting a little lucky here. They have relative calm. There

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Speaker 2: was no crazy CPI print yesterday. Retail sales kept the

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Speaker 2: market relatively calm.

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Speaker 3: The vix is low. But there are a lot of

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Speaker 3: risks on the horizon.

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Speaker 2: If you are a new investor looking to arm, what

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Speaker 2: are those risks that you should really be aware of

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Speaker 2: impacting this valuation that we see today.

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Speaker 9: Yeah, so in the near term, like I said, because

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Speaker 9: the revenue composition is heavily relied on the smartphone, and

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Speaker 9: we know that smartphone Michael's market is going through a

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Speaker 9: slump right now, So as they come out for the

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Speaker 9: near term quarters. You know, investors will have to be

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Speaker 9: patient and face for some hurdles coming in the near

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Speaker 9: term because those data center revenues will take time to

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Speaker 9: become a significant portion of the total revenue. And the

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Speaker 9: second key risk is China. From China, it's about two angles.

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Speaker 9: One is the exposure and the concentration. I mean, they

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Speaker 9: have twenty four percentage revenues coming from China, which is

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Speaker 9: not a lot or not an outlier for any large

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Speaker 9: semi company. I mean all of those have exposure in

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Speaker 9: that range or even higher for a smartphone company. But

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Speaker 9: the other key risk is concentration. So Armed China is

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Speaker 9: their gateway to the entire China market. So every customer

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Speaker 9: they sell what they want to sell in and now

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Speaker 9: they have to go through this one entity. So if

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Speaker 9: something were to really go south there, you're talking about

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Speaker 9: cutting off the entier market. So that's the two risks

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Speaker 9: investor needs to brace.

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Speaker 3: Themselves for all or nothing. Feels a little risky.

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Speaker 2: But at the same time, here when you think about

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Speaker 2: the long term, you've said that a couple of times. Now,

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Speaker 2: how long is the long term? When do investors have

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Speaker 2: to be patient until.

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Speaker 9: I think like at least about three years. I mean

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Speaker 9: today when we look at the server market specifically, their

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Speaker 9: market share is in mid single digits, and in automotive

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Speaker 9: it's again low double digits. We expect it to almost

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Speaker 9: double in three to five years. And these markets are large.

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Speaker 9: So even if you get a small pie of like

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Speaker 9: said data center AI market, that's still adding revenue north

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Speaker 9: of billions of dollars to a company which is almost

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Speaker 9: doing close to less than three billion last year.

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Speaker 2: When you think about the competitive landscape at this point,

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Speaker 2: you have an arm now in public markets softmake at

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Speaker 2: some point we'll look to sell more shares. How do

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Speaker 2: you expect them to stack up against their competitive set

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Speaker 2: when it comes to how investors will put money to

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Speaker 2: work in the sector.

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Speaker 9: Yeah, I mean I think they need to continue executing

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Speaker 9: on the promise that they would have delivered for that

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Speaker 9: ramp and the roadshow presentation. So investors are going to

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Speaker 9: be keeping key e on how they're doing in the

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Speaker 9: data center in the automotive market. So any accelerated growth

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Speaker 9: design wins there should be a tailwind for them how

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Speaker 9: it had been in absence of that.

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Speaker 2: That's Bloomberg Intelligence and Analysts Kunjohn Sovanni, thank you so

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Speaker 2: much for your time. We're going to head back down

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Speaker 2: to the NASDAC now where Bloomberg's Caroline Hyde is getting

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Speaker 2: all the latest details. But Caroline, before those details, what's

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Speaker 2: the mood. It must feel pretty good to be watching

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Speaker 2: an ipo pop after such a big.

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Speaker 6: Drought, Shanali.

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Speaker 4: The relief, the optimism, cautious optimism. I mean, now that

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Speaker 4: they've seen this trade exit behind me, we're currently training

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Speaker 4: up more than thirteen percent. It was this art and

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Speaker 4: science balance that everyone has to remind themselves of. It

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Speaker 4: takes a while to ensure that they've got the right

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Speaker 4: amount basically sellers in place. In this particular instance, the

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Speaker 4: issue is is, of course they got what seven hundred

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Speaker 4: million dollars being taken down by some really important investors

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Speaker 4: who are basically customers Apple and Video, and they're like,

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Speaker 4: but they've also got to ensure that some people are

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Speaker 4: going to be putting the less than ten percent free

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Speaker 4: float up for sale at this moment and locking in

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Speaker 4: some of the profits. Now, it's been a big profit

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Speaker 4: for SoftBank. You know that they've made about seventy percent

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Speaker 4: on this particular purchase that they made of thirty two

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Speaker 4: billion dollars for arm back in twenty sixteen. But this

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Speaker 4: is so important for the sentiment of the market. The

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Speaker 4: fact that they've managed to decide to go in lower

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Speaker 4: fifty one dollars was just at the top of them range.

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Speaker 4: They didn't get greedy, and they've decided to price it

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Speaker 4: and put fifty six dollars therefore to allow it to

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Speaker 4: continue to trade higher for the rest of the day.

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Speaker 4: That's what instacart, that's what some of the other companies

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Speaker 4: eyeing this market need.

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Speaker 2: To see a ten percent pop. Rather, it looks a

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Speaker 2: lot better here than an eight percent pop would. Do

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Speaker 2: you think this conservatism that they've took in their underwriting

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Speaker 2: approach to the IPO price last night is what's going

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Speaker 2: to be the name of the game for the companies

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Speaker 2: coming up.

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Speaker 4: That's what's so interesting is this idiosyncratic is this massa

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Speaker 4: head of soft pank who apparently we understand due to

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Speaker 4: our reporting, really took some charge in this deciding that

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Speaker 4: they weren't going to go for the fifty two dollars,

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Speaker 4: they were going to stick to fifty one to ensure

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Speaker 4: that they got that really good gauge of sentiment. He

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Speaker 4: is a long term holder of this stock. He said

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Speaker 4: that time and time again. Yes, he wants to see

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Speaker 4: that some valuation increase in the near term, but in

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Speaker 4: the longer term too. Maybe, as you were just mentioning

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Speaker 4: with a previous guest, maybe he offloads more stop. Maybe

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Speaker 4: he uses it as collateral for further financial engineering that

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Speaker 4: we know that he is so artful at and I

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Speaker 4: think that we will see the likes of Instacart and

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Speaker 4: some of the other companies eyeing having to decide whether

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Speaker 4: or not they want to take long term perspective leave

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Speaker 4: a little bit of money on the table to ensure

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Speaker 4: that their company comes with a good set of pop

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Speaker 4: into the market that then continues to have that demand side.

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Speaker 4: We know that there's loads of concerns, geopolitical risks being

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Speaker 4: one of them, anxiety around interest rates. This has been

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Speaker 4: a volatile market for a long time.

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Speaker 5: People who are.

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Speaker 4: Waiting for this IPO window to open, and they want

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Speaker 4: to see it continue to be open until as we

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Speaker 4: had Karen Snowsey before the elections of next year.

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Speaker 2: Bloomberg's Caroline Hyde, we thank you so very much for

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Speaker 2: all your time and what perfect timing we have had

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Speaker 2: you at the top of the show while the stock

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Speaker 2: has opened. Now let's continue the conversation on venture capital

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Speaker 2: and bring in Bloomberg's Katie Roof, because what a win

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Speaker 2: for stopping They needed a win, and so then having

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Speaker 2: this on the books, now, what does it mean for

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Speaker 2: not only their portfolio company, but also the appetite for

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Speaker 2: other vcs who are now looking to get some money

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Speaker 2: back on the table for themselves.

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Speaker 11: Sure, yeah, so I think you know, this is obviously

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Speaker 11: a positive sign for tech broadly. You know, we have

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Speaker 11: Claview coming up next week, We have Instacart coming up

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Speaker 11: next week, and so we want to see public investors

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Speaker 11: or they want to see public investors with enthusiasm for

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Speaker 11: tech stocks. I would say that a ten percent pop

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Speaker 11: isn't a big pop. I mean, I mean typically you

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Speaker 11: would see twenty to thirty percent pop on day one.

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Speaker 11: I mean, there have been times that it's gone higher,

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Speaker 11: but usually the goal is a little bit higher than

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Speaker 11: ten percent. But you know, the fact that it went

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Speaker 11: up is good because there aren't a lot of tech

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Speaker 11: stocks that have gone up in the last eighteen months.

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Speaker 11: This is the only big tech IPO we've had since

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Speaker 11: twenty twenty one, so people are watching this one closely,

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Speaker 11: even though it is a pretty different sector than a

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Speaker 11: lot of the other tech companies and certainly the venture

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Speaker 11: back companies.

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Speaker 3: What about the approach.

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Speaker 2: We're talking a little bit about pricing, but what about ownership.

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Speaker 2: In this instance, SoftBank is only floating about ten percent

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Speaker 2: in the last twenty four hours. A lot of agitas

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Speaker 2: about there. It's about vcs holding on too long into

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Speaker 2: an ipo. Investors want their money back. So do you

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Speaker 2: expect more investors to start doing that?

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Speaker 6: Yeah, sometimes we've seen this.

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Speaker 11: You know, it's called a low float IPO, where you

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Speaker 11: just take a a small percentage of the company and

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Speaker 11: release it to the public. And that is actually often

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Speaker 11: designed help ensure a better pop because you know, if

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Speaker 11: you limit supply, then it can kind of artificially raise demand,

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Speaker 11: and so we've seen that in the past. I think

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Speaker 11: that right now, certainly most tech companies would probably be

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Speaker 11: wise to price these things conservatively, or at least that's

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Speaker 11: what people are telling me, because yeah, you know, it

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Speaker 11: can if you make a bad first impression on the market,

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Speaker 11: it can spook investors in the long run.

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Speaker 2: Katie, I've got to say, it's so nice to have

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Speaker 2: you in New York for a big listening in New

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Speaker 2: York from an international company. But also I know that

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Speaker 2: you've been kind of running around doing a lot of report.

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Speaker 2: I got to do a little bit of the reporting

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Speaker 2: with you. What's the new name of the game. It's

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Speaker 2: not just about profitability, is it? When we think about

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Speaker 2: the companies that are looking to list, and the window

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Speaker 2: doesn't seem to be as open as people think it is.

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Speaker 11: Yeah, that's a big question on everyone's minds right now

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Speaker 11: because vcs tend.

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Speaker 6: To be growth investors.

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Speaker 11: They really look at companies with top line revenue growth,

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Speaker 11: and that was what public investors see to be interested

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Speaker 11: in a couple of years ago, but then there's been

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Speaker 11: a perception that that changed and that they care more

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Speaker 11: about profitability. But vcs will tell you that that's at

443
00:21:08,000 --> 00:21:10,359
Speaker 11: odds with growth because if you have to cut you know,

444
00:21:10,359 --> 00:21:13,120
Speaker 11: your sales and marketing to be profitable, then that will.

445
00:21:13,560 --> 00:21:14,919
Speaker 6: Reduce your growth rates.

446
00:21:14,920 --> 00:21:17,560
Speaker 11: And so we see with Instacart that they are profitable

447
00:21:17,920 --> 00:21:20,919
Speaker 11: in line with what the perception of what tech public

448
00:21:20,920 --> 00:21:24,000
Speaker 11: investors want, but they have had slowed growth, and so

449
00:21:24,080 --> 00:21:26,359
Speaker 11: that's going to be one that people are watching. You

450
00:21:26,400 --> 00:21:28,280
Speaker 11: have Klavio, on the other hand, where they're both growing

451
00:21:28,320 --> 00:21:30,639
Speaker 11: and profitable, so we'll see.

452
00:21:30,680 --> 00:21:32,280
Speaker 3: How do you think about the next week ahead.

453
00:21:32,480 --> 00:21:34,240
Speaker 2: Obviously the bankers are going to be very busy on

454
00:21:34,320 --> 00:21:35,920
Speaker 2: roadshows for both of these companies.

455
00:21:35,920 --> 00:21:36,800
Speaker 3: What's the timeline?

456
00:21:37,560 --> 00:21:40,119
Speaker 11: Yeah, so, I mean right now we have the roadshows

457
00:21:40,200 --> 00:21:43,359
Speaker 11: for Instacart and Clavio underway, and they're both scheduled to

458
00:21:43,400 --> 00:21:45,760
Speaker 11: go next week around the same time.

459
00:21:46,119 --> 00:21:49,200
Speaker 2: So another thing also that has just happened is Data

460
00:21:49,240 --> 00:21:52,600
Speaker 2: Bricks raising more money at a forty three billion dollars evaluation.

461
00:21:52,680 --> 00:21:53,119
Speaker 3: I believe.

462
00:21:53,560 --> 00:21:56,240
Speaker 2: What does this mean because you saw other companies kind

463
00:21:56,240 --> 00:21:58,679
Speaker 2: of raise money pre ipo, does it change the pre

464
00:21:58,760 --> 00:22:01,160
Speaker 2: I pipo appetite as well?

465
00:22:01,960 --> 00:22:05,400
Speaker 11: Yeah, so, a lot of companies other than AI companies,

466
00:22:05,440 --> 00:22:08,600
Speaker 11: pretty much no one has been able to raise a

467
00:22:08,840 --> 00:22:12,600
Speaker 11: high valuations or at least even flat valuations in the

468
00:22:12,680 --> 00:22:13,600
Speaker 11: last year or so.

469
00:22:13,680 --> 00:22:15,040
Speaker 6: There's been very very few.

470
00:22:15,600 --> 00:22:18,480
Speaker 11: Data Breaks is a company that has a lot of

471
00:22:18,560 --> 00:22:22,760
Speaker 11: investor interest, so even though the price is already high.

472
00:22:22,560 --> 00:22:24,000
Speaker 6: They've been able to sustain that.

473
00:22:25,240 --> 00:22:28,520
Speaker 11: Typically, when I see a company like this raising money,

474
00:22:28,600 --> 00:22:31,080
Speaker 11: I think they're not on the verge of IPO. I mean,

475
00:22:31,160 --> 00:22:33,560
Speaker 11: certainly they could go public in the next year, but

476
00:22:33,960 --> 00:22:36,440
Speaker 11: you wouldn't want to dilute your ownership in the next

477
00:22:36,560 --> 00:22:38,760
Speaker 11: few months before an IPO unless we're going to do.

478
00:22:38,680 --> 00:22:42,640
Speaker 2: A direct listing that is Bloomberg's Katie Roof. We thank

479
00:22:42,680 --> 00:22:44,720
Speaker 2: you so very much for your time. We want to

480
00:22:44,760 --> 00:22:47,280
Speaker 2: give you an update as well on where ARM is trading.

481
00:22:47,280 --> 00:22:50,320
Speaker 2: We are looking at that IPO pop still holding.

482
00:22:50,680 --> 00:22:50,920
Speaker 3: Now.

483
00:22:51,119 --> 00:22:54,639
Speaker 2: Listen, remember this has been rising as much as fifteen percent.

484
00:22:54,720 --> 00:22:57,200
Speaker 2: We are seeing some of those gains a little bit volatile,

485
00:22:57,200 --> 00:22:59,720
Speaker 2: but remember we did see initially that pop of about

486
00:22:59,720 --> 00:23:02,040
Speaker 2: ten percent. If you take a look at trading now,

487
00:23:02,040 --> 00:23:05,080
Speaker 2: we are looking at a stock now very much up more.

488
00:23:04,920 --> 00:23:06,200
Speaker 3: Than sixty dollars a share.

489
00:23:06,359 --> 00:23:10,360
Speaker 2: This was a stock that was priced at fifty one dollars.

490
00:23:10,400 --> 00:23:13,480
Speaker 2: It was a Masa son that himself told the bankers

491
00:23:13,680 --> 00:23:16,960
Speaker 2: that he wanted to keep this more conservatively priced. They

492
00:23:17,040 --> 00:23:19,040
Speaker 2: tried to bring it up about a dollar to fifty

493
00:23:19,080 --> 00:23:22,040
Speaker 2: two dollars a share. But bringing it down has not

494
00:23:22,280 --> 00:23:25,399
Speaker 2: only given it an initial pop, it is a little

495
00:23:25,440 --> 00:23:26,920
Speaker 2: more than what it would have been if they priced

496
00:23:26,960 --> 00:23:29,399
Speaker 2: it higher. Now remember also to the point that our

497
00:23:29,440 --> 00:23:32,480
Speaker 2: own Katie Roof was making. There have certainly been bigger

498
00:23:32,520 --> 00:23:35,080
Speaker 2: pops in history but there were questions coming into this

499
00:23:35,160 --> 00:23:36,960
Speaker 2: IPO from the beginning.

500
00:23:36,880 --> 00:23:38,600
Speaker 3: About the valuation itself.

501
00:23:38,800 --> 00:23:41,119
Speaker 2: So you know what, this is something that is stopped

502
00:23:41,320 --> 00:23:43,720
Speaker 2: sacking up for a win for the underwriters and certainly

503
00:23:43,840 --> 00:23:46,600
Speaker 2: for soft Bank. Now let's get more contacts from Bloomberg's

504
00:23:46,600 --> 00:23:47,120
Speaker 2: Ian King.

505
00:23:47,520 --> 00:23:47,720
Speaker 3: Ian.

506
00:23:47,760 --> 00:23:50,000
Speaker 2: When you take a look at the competitive dynamics that

507
00:23:50,119 --> 00:23:52,199
Speaker 2: ARM is facing, why do you think that it is

508
00:23:52,280 --> 00:23:55,120
Speaker 2: getting such a warm reaction in public markets.

509
00:23:55,880 --> 00:23:58,720
Speaker 12: Well, I mean, there are a couple of things going on, Sonali.

510
00:23:58,720 --> 00:24:02,360
Speaker 12: There are the set of the mechanics of the IPO itself.

511
00:24:02,480 --> 00:24:04,800
Speaker 12: Remember this is just a very small portion of the

512
00:24:04,800 --> 00:24:08,720
Speaker 12: company that's being offered. There are strategic investors already involved,

513
00:24:08,720 --> 00:24:13,200
Speaker 12: so there's relatively little kind of supply here in terms

514
00:24:13,200 --> 00:24:15,879
Speaker 12: of the supply demand balance on the stock. But on

515
00:24:15,920 --> 00:24:18,320
Speaker 12: the flip side of it, we're also IPO and at

516
00:24:18,320 --> 00:24:21,600
Speaker 12: a time when people are very interested in semiconductor shares.

517
00:24:21,680 --> 00:24:25,960
Speaker 12: You know, the Philadelphia semiconductor indexes up very strongly this year,

518
00:24:26,000 --> 00:24:29,760
Speaker 12: and obviously everybody's very focused on the opportunity that AI

519
00:24:29,920 --> 00:24:31,320
Speaker 12: is creating for these companies.

520
00:24:32,200 --> 00:24:32,679
Speaker 3: What about the.

521
00:24:32,680 --> 00:24:36,040
Speaker 2: Competitive dynamics, given that they're getting such a warm reaction today,

522
00:24:36,040 --> 00:24:38,399
Speaker 2: do you think that this is excitement around the new

523
00:24:38,480 --> 00:24:40,760
Speaker 2: kid on the block, or is this an idea that

524
00:24:40,840 --> 00:24:44,280
Speaker 2: we'll keep sending the other shares higher as well.

525
00:24:44,320 --> 00:24:47,440
Speaker 12: I mean, it's a yes and no to that. They're

526
00:24:47,480 --> 00:24:49,800
Speaker 12: really not the new kid on the block. Everybody knows

527
00:24:49,800 --> 00:24:53,840
Speaker 12: about They've been around a long time. Their technology is

528
00:24:53,880 --> 00:24:56,320
Speaker 12: pretty much everywhere. It's used by all of the major

529
00:24:56,320 --> 00:25:00,159
Speaker 12: tip makers. At the same time, they are pitching themselves

530
00:25:00,000 --> 00:25:03,840
Speaker 12: a different company that does way more than just sell

531
00:25:03,960 --> 00:25:08,199
Speaker 12: the bare bones of the IP that goes into these chips.

532
00:25:08,240 --> 00:25:11,640
Speaker 12: You know, they're selling themselves as being much more comprehensive

533
00:25:11,680 --> 00:25:15,920
Speaker 12: company and having access to higher profit margins.

534
00:25:15,640 --> 00:25:18,320
Speaker 2: Quickly in here, what about the soft Bank ownership, Given

535
00:25:18,359 --> 00:25:20,680
Speaker 2: they've only floated about ten percent, they will sell more

536
00:25:20,720 --> 00:25:24,359
Speaker 2: eventually over time, But the governance all points to soft Bank.

537
00:25:24,600 --> 00:25:25,919
Speaker 3: Is that a plus or a minus?

538
00:25:27,440 --> 00:25:30,520
Speaker 12: It's a variable. I think that's the way to describe it. Obviously,

539
00:25:30,720 --> 00:25:33,240
Speaker 12: soft Bank will do what Soft Bank does in terms

540
00:25:33,280 --> 00:25:37,240
Speaker 12: of maximizing its profits down the line. It's an investor,

541
00:25:38,359 --> 00:25:40,520
Speaker 12: it's as much as it is a technology company. So

542
00:25:40,560 --> 00:25:45,040
Speaker 12: that's definitely an overhanger or a consideration on armed But

543
00:25:45,600 --> 00:25:47,919
Speaker 12: at the same time it also gives them perhaps some

544
00:25:48,000 --> 00:25:50,640
Speaker 12: latitude that other publicly traded companies might not have.

545
00:25:52,160 --> 00:25:53,920
Speaker 3: Our thanks to Bloomberg's Ian King.

546
00:25:54,240 --> 00:25:56,320
Speaker 2: We want to touch back in one more time here

547
00:25:56,359 --> 00:25:58,560
Speaker 2: on ARMS share before we had to commercial break, because

548
00:25:58,560 --> 00:26:01,640
Speaker 2: we are looking at that i IPO pop. Not only

549
00:26:01,720 --> 00:26:04,080
Speaker 2: is the IPO market back, it is back in time

550
00:26:04,200 --> 00:26:07,439
Speaker 2: for cooler markets. When we're looking at sixty one dollars

551
00:26:07,520 --> 00:26:09,920
Speaker 2: a share here, we are looking at a price here

552
00:26:09,960 --> 00:26:13,080
Speaker 2: that is almost twenty percent now more than what we

553
00:26:13,119 --> 00:26:18,040
Speaker 2: initially had come to price at just last night. Now,

554
00:26:18,080 --> 00:26:20,400
Speaker 2: what does this mean in terms of valuation? You are

555
00:26:20,480 --> 00:26:25,760
Speaker 2: watching a company shoot higher, very quickly, closer to sixty

556
00:26:25,760 --> 00:26:29,320
Speaker 2: five billion dollars in valuation. The current valuation at sixty

557
00:26:29,359 --> 00:26:32,800
Speaker 2: five billion dollars would be a little bit higher than

558
00:26:32,840 --> 00:26:36,720
Speaker 2: what SoftBank had brought back its Arms stake for just.

559
00:26:36,800 --> 00:26:40,080
Speaker 3: A couple of weeks ago. This is Bloomberg.

560
00:26:53,119 --> 00:26:56,040
Speaker 2: Welcome back to Bloomberg Technology. I'm Shinali Bask. We're going

561
00:26:56,080 --> 00:26:58,720
Speaker 2: to look quickly at that arm ipo price once again.

562
00:26:58,840 --> 00:27:02,160
Speaker 2: That first day of trading, you're getting that IPO pop.

563
00:27:02,200 --> 00:27:04,240
Speaker 2: You're getting almost a twenty percent pop in the first

564
00:27:04,280 --> 00:27:08,160
Speaker 2: day of trading so far, that is about sixty dollars

565
00:27:08,160 --> 00:27:11,240
Speaker 2: a share, and it is up immediately from the fifty

566
00:27:11,280 --> 00:27:14,480
Speaker 2: one at priced at at more than sixty billion dollars

567
00:27:14,480 --> 00:27:17,240
Speaker 2: in valuation. You are getting a price very near what

568
00:27:17,400 --> 00:27:21,240
Speaker 2: SoftBank had bought back its stake for in ARM. We're

569
00:27:21,240 --> 00:27:23,240
Speaker 2: going to now bring in Aja Shah for his read

570
00:27:23,280 --> 00:27:25,159
Speaker 2: on this. He's the managing director and co head of

571
00:27:25,240 --> 00:27:29,320
Speaker 2: the Technology, Media and Telecommunications Group for Deutsche Bank, one

572
00:27:29,359 --> 00:27:32,440
Speaker 2: of the underwriters on the ARM IPO. When you look

573
00:27:32,480 --> 00:27:35,480
Speaker 2: at what has happened today, what does it really mean

574
00:27:35,560 --> 00:27:36,360
Speaker 2: in terms.

575
00:27:36,080 --> 00:27:38,199
Speaker 3: Of the companies that can finally make it back to

576
00:27:38,280 --> 00:27:39,800
Speaker 3: market next?

577
00:27:47,160 --> 00:27:49,200
Speaker 13: Sorry, sorry about that, hey.

578
00:27:49,000 --> 00:27:51,760
Speaker 2: Aja, Actually we are gonna get right back to you,

579
00:27:51,840 --> 00:27:54,320
Speaker 2: because we are standing by with a pretty key guest.

580
00:27:54,280 --> 00:27:55,160
Speaker 3: For a day like today.

581
00:27:55,160 --> 00:27:57,080
Speaker 6: That is ARM CEO.

582
00:27:56,760 --> 00:28:00,320
Speaker 2: Rene Has with our own Caroline Hide, Caroline and Ali.

583
00:28:00,400 --> 00:28:02,760
Speaker 4: It is great to be here with Renee, the CEO

584
00:28:02,840 --> 00:28:05,679
Speaker 4: of ARM. It is your day and they talk to

585
00:28:05,760 --> 00:28:10,280
Speaker 4: us about the amount of emails, phone calls, text messages, celebrations,

586
00:28:10,320 --> 00:28:13,920
Speaker 4: the Cambridge part of your company going berserk.

587
00:28:14,000 --> 00:28:14,679
Speaker 7: How does it feel?

588
00:28:14,760 --> 00:28:17,000
Speaker 1: Oh gosh, what an exciting day. You know, I'm hearing

589
00:28:17,000 --> 00:28:18,680
Speaker 1: from high school friends. I have not talked to in

590
00:28:18,680 --> 00:28:20,520
Speaker 1: a long time. Who are saying you never told me?

591
00:28:21,200 --> 00:28:24,000
Speaker 1: I think as we were watching this on TV. But

592
00:28:24,280 --> 00:28:26,760
Speaker 1: most of all, I'm so thrilled for the employees of ARM,

593
00:28:27,440 --> 00:28:31,520
Speaker 1: thirty three year old company, great heritage, but watching all

594
00:28:31,560 --> 00:28:35,400
Speaker 1: the employees in Cambridge celebrate simultaneously that was that was magical.

595
00:28:35,200 --> 00:28:37,359
Speaker 4: And they might continue to celebrate as we see what

596
00:28:37,520 --> 00:28:42,040
Speaker 4: seventeen eighteen percent increase. How has that journey of going

597
00:28:42,040 --> 00:28:44,760
Speaker 4: out to investors the road show, the story that you've

598
00:28:44,760 --> 00:28:47,360
Speaker 4: been able seemingly to successfully sell, the fact that you're

599
00:28:47,400 --> 00:28:49,640
Speaker 4: trading well on this day. What was the vision they

600
00:28:49,640 --> 00:28:50,120
Speaker 4: wanted to hear?

601
00:28:50,480 --> 00:28:51,240
Speaker 3: Revenue growth?

602
00:28:51,280 --> 00:28:53,320
Speaker 4: I hear of eleven percent up to twenty five percent

603
00:28:53,360 --> 00:28:54,160
Speaker 4: in the next couple of years.

604
00:28:54,160 --> 00:28:54,720
Speaker 6: What drives you?

605
00:28:55,040 --> 00:28:58,200
Speaker 1: I think it was a great process. Investors really wanted

606
00:28:58,200 --> 00:29:00,360
Speaker 1: to understand the opportunity we had in front of us,

607
00:29:00,520 --> 00:29:02,680
Speaker 1: and of course AI, which you can't really talk about

608
00:29:02,680 --> 00:29:05,680
Speaker 1: our industry without talking about AI. And I think helping

609
00:29:05,680 --> 00:29:09,480
Speaker 1: them understand that you can't really run AI without ARM,

610
00:29:09,560 --> 00:29:11,920
Speaker 1: without a CPU, and just pointing out to them that

611
00:29:11,960 --> 00:29:14,600
Speaker 1: it's in everywhere, in every device that people touch, was

612
00:29:14,640 --> 00:29:16,160
Speaker 1: a big part of the process for us.

613
00:29:16,000 --> 00:29:19,200
Speaker 4: Because everyone has made the equivalent of your smartphone. It's

614
00:29:19,240 --> 00:29:22,200
Speaker 4: completely absorbed, more than ninety percent of phones is where

615
00:29:22,200 --> 00:29:25,000
Speaker 4: your CPUs are. But the design, the fact that you

616
00:29:25,040 --> 00:29:27,240
Speaker 4: now want to be integral to data centers, and they're like,

617
00:29:28,520 --> 00:29:31,440
Speaker 4: how certain are you on the revenue vision, on the

618
00:29:31,480 --> 00:29:35,560
Speaker 4: profitability vision, even though we see concerns about macro environment

619
00:29:35,640 --> 00:29:38,120
Speaker 4: still and whether or not we're in an AI hype cycle.

620
00:29:38,320 --> 00:29:42,320
Speaker 1: Yeah, so AI is everywhere, and if it's your edge

621
00:29:42,320 --> 00:29:46,360
Speaker 1: device like the Assistant or the Alexa or your autonomous vehicle,

622
00:29:46,400 --> 00:29:49,240
Speaker 1: that's all AI. And now we're seeing it in the cloud,

623
00:29:49,280 --> 00:29:51,160
Speaker 1: in the data center and all the growth with Nvidia

624
00:29:51,240 --> 00:29:53,560
Speaker 1: in VideA announcing one of their newest products, grace Hopper,

625
00:29:53,880 --> 00:29:56,320
Speaker 1: that is based on ARM. So ARM is everywhere relative

626
00:29:56,360 --> 00:29:59,040
Speaker 1: to AI. We also have a very unique business model

627
00:29:59,280 --> 00:30:01,240
Speaker 1: that gives us the ability to have a very very

628
00:30:01,240 --> 00:30:03,600
Speaker 1: good vision in the future in terms of when people

629
00:30:03,680 --> 00:30:06,920
Speaker 1: use our products. So relative to our confidence in the outlook,

630
00:30:07,640 --> 00:30:09,680
Speaker 1: we have a very very high confidence that the growth

631
00:30:09,760 --> 00:30:11,480
Speaker 1: rate that we have talked about will be sustained.

632
00:30:11,960 --> 00:30:14,480
Speaker 4: How Ward, were investeds about China and your exposure.

633
00:30:14,640 --> 00:30:15,960
Speaker 1: I think there were a lot of questions as you

634
00:30:15,960 --> 00:30:19,800
Speaker 1: can imagine about China in general, given all the geopolitics,

635
00:30:19,920 --> 00:30:21,800
Speaker 1: our business there looks a lot like the rest of

636
00:30:21,840 --> 00:30:24,040
Speaker 1: the world. We have great growth in the data center,

637
00:30:24,080 --> 00:30:27,480
Speaker 1: we have great growth in automotive. China's huge on electric vehicles,

638
00:30:27,480 --> 00:30:30,040
Speaker 1: so it's been terrific there for us. I have the

639
00:30:30,040 --> 00:30:32,800
Speaker 1: same kind of headaches that every other tech CEO has

640
00:30:32,880 --> 00:30:35,560
Speaker 1: regarding how to navigate through this, but no different.

641
00:30:36,560 --> 00:30:38,640
Speaker 4: Do you think there will be more pressure now that

642
00:30:38,680 --> 00:30:39,719
Speaker 4: you're public again?

643
00:30:39,880 --> 00:30:40,320
Speaker 7: Ultimately?

644
00:30:40,360 --> 00:30:43,400
Speaker 4: I mean you came to ARM in twenty thirteen, you

645
00:30:43,440 --> 00:30:45,280
Speaker 4: were listed at that point, but it's not Bean Sin's

646
00:30:45,320 --> 00:30:47,240
Speaker 4: twenty sixteen that you have been How does the game

647
00:30:47,360 --> 00:30:49,160
Speaker 4: change as a leader of that business now?

648
00:30:49,440 --> 00:30:51,040
Speaker 1: Yeah, I think there's some things that we were able

649
00:30:51,040 --> 00:30:53,320
Speaker 1: to do as a private company that will just be different. Right,

650
00:30:53,480 --> 00:30:56,320
Speaker 1: quarterly earnings, making sure that we hit all our commitments.

651
00:30:56,760 --> 00:30:58,760
Speaker 1: But ARM is not a business you measure from quarter

652
00:30:58,800 --> 00:31:02,560
Speaker 1: to quarter. Measure us over years and decades, and the

653
00:31:02,640 --> 00:31:04,840
Speaker 1: long term vision is something that I am very, very

654
00:31:04,840 --> 00:31:06,800
Speaker 1: passionate about, and we'll continue to drive the company the

655
00:31:06,800 --> 00:31:08,400
Speaker 1: same way private or public.

656
00:31:08,880 --> 00:31:11,640
Speaker 4: You have a lot of key vested interests, whether they

657
00:31:11,920 --> 00:31:15,240
Speaker 4: be your clients, APPLETSMC and TELL taking big stakes in

658
00:31:15,280 --> 00:31:19,480
Speaker 4: the company today? How important are those voices? Visa the masses,

659
00:31:19,840 --> 00:31:21,640
Speaker 4: the head of soft Bank. I'm sure you're on the

660
00:31:21,640 --> 00:31:22,320
Speaker 4: phone too daily.

661
00:31:22,560 --> 00:31:25,120
Speaker 1: Yeah. So one of the challenges of our industry I'm

662
00:31:25,120 --> 00:31:27,640
Speaker 1: familiar with ARM, is that the fact that we're everywhere.

663
00:31:28,240 --> 00:31:30,240
Speaker 1: None of this works unless we play nice with others.

664
00:31:30,600 --> 00:31:33,120
Speaker 1: So we have to have a lot of engagement with

665
00:31:33,120 --> 00:31:36,080
Speaker 1: strategic partners and making sure that we're managing that balance,

666
00:31:36,280 --> 00:31:38,200
Speaker 1: including Masa, our chief shareholder.

667
00:31:38,960 --> 00:31:41,719
Speaker 4: Do you think he lets more of ARM become public?

668
00:31:41,840 --> 00:31:42,640
Speaker 4: Is that something you'd like.

669
00:31:42,640 --> 00:31:43,560
Speaker 7: To see you now?

670
00:31:43,800 --> 00:31:46,520
Speaker 1: Massa and I talk quite frequently, but it's really not

671
00:31:46,560 --> 00:31:48,880
Speaker 1: about the day to day. It's about the long term vision,

672
00:31:48,920 --> 00:31:51,600
Speaker 1: the passion that he and I have about the future

673
00:31:51,640 --> 00:31:54,000
Speaker 1: and really about what this company can be long term.

674
00:31:54,120 --> 00:31:56,760
Speaker 1: So I don't expect that to change being a public company.

675
00:31:56,880 --> 00:31:58,520
Speaker 4: Do you think you go public in the UK? I'm

676
00:31:58,520 --> 00:31:59,760
Speaker 4: sure it's been a bit of sweet for the London

677
00:31:59,760 --> 00:32:00,640
Speaker 4: Stuff Exchange today.

678
00:32:00,720 --> 00:32:00,920
Speaker 5: Yeah.

679
00:32:00,920 --> 00:32:03,680
Speaker 1: So today obviously we're in New York, but we're incredibly

680
00:32:03,720 --> 00:32:06,040
Speaker 1: proud of our UK heritage and we are opening to

681
00:32:06,120 --> 00:32:07,240
Speaker 1: considering that down the road.

682
00:32:07,520 --> 00:32:09,320
Speaker 4: Okay, any sort of timeframe for that.

683
00:32:09,720 --> 00:32:11,320
Speaker 1: None that we can talk about today. I'm trying to

684
00:32:11,320 --> 00:32:12,040
Speaker 1: get through today.

685
00:32:11,840 --> 00:32:14,200
Speaker 4: A little bit well before you get through today. In

686
00:32:14,200 --> 00:32:20,040
Speaker 4: that respect, investors do love all things regarding artificial intelligence,

687
00:32:20,080 --> 00:32:22,840
Speaker 4: But how have you managed to land that your story

688
00:32:22,960 --> 00:32:25,800
Speaker 4: is different? People have been so exuberant about Nvidia, where

689
00:32:25,840 --> 00:32:30,520
Speaker 4: you used to work, but they're really exuberant about GPUs.

690
00:32:31,160 --> 00:32:33,840
Speaker 4: How have you said that you are able to claim

691
00:32:34,120 --> 00:32:37,760
Speaker 4: a larger royalty share of how AI continues to be said?

692
00:32:37,840 --> 00:32:39,800
Speaker 1: Yeah, So one of the benefits of the road show

693
00:32:39,880 --> 00:32:42,200
Speaker 1: was spending a lot of time with investors talking about

694
00:32:42,200 --> 00:32:44,120
Speaker 1: AI and where we fit. And I think one of

695
00:32:44,160 --> 00:32:47,440
Speaker 1: the misconceptions is that a GPU can run without a CPU,

696
00:32:47,960 --> 00:32:50,360
Speaker 1: which is just not the case. The CPU is central

697
00:32:50,400 --> 00:32:53,360
Speaker 1: to every electronics device and there are devices that ship

698
00:32:53,400 --> 00:32:57,120
Speaker 1: with a CPU and a GPU. So once investors kind

699
00:32:57,120 --> 00:33:00,000
Speaker 1: of got that, then explaining where the puck was going

700
00:33:00,080 --> 00:33:03,680
Speaker 1: relative to gosh, in Vidia's next generation host advanced product,

701
00:33:03,680 --> 00:33:07,000
Speaker 1: grace Hopper, is using ARM CPUs instead of the competition,

702
00:33:07,360 --> 00:33:09,480
Speaker 1: the light bulb went on that, oh my gosh, you

703
00:33:09,560 --> 00:33:11,760
Speaker 1: need the CPU. And at the same time, in Video

704
00:33:11,760 --> 00:33:13,400
Speaker 1: has made a big bet on ARM in their most

705
00:33:13,440 --> 00:33:16,600
Speaker 1: sophisticated product, and once that message kind of sunk through,

706
00:33:17,600 --> 00:33:19,520
Speaker 1: the light bulb went on as oh my gosh, I

707
00:33:19,560 --> 00:33:19,880
Speaker 1: get it.

708
00:33:21,040 --> 00:33:24,800
Speaker 4: There has been this moment though, at which we're trying

709
00:33:24,840 --> 00:33:29,000
Speaker 4: to understand how the landscape works with global demand and

710
00:33:29,040 --> 00:33:31,800
Speaker 4: that translating into revenue. When you think of Oracle's numbers

711
00:33:31,840 --> 00:33:34,280
Speaker 4: that came in and look, they delivered thirty percent increase

712
00:33:34,320 --> 00:33:36,960
Speaker 4: when it comes to their cloud provision and their AI bet,

713
00:33:37,040 --> 00:33:39,480
Speaker 4: but it doesn't always immediately turn into revenue in the

714
00:33:39,520 --> 00:33:42,320
Speaker 4: here and the now. How convinced are you that it

715
00:33:42,400 --> 00:33:44,760
Speaker 4: is going to be in the bottom line evident in

716
00:33:44,800 --> 00:33:45,800
Speaker 4: the next coming quarters.

717
00:33:45,840 --> 00:33:50,040
Speaker 1: As far as AI, oh, I think it's un questionable

718
00:33:50,040 --> 00:33:52,840
Speaker 1: that AI, which has already been here right for a

719
00:33:52,920 --> 00:33:56,800
Speaker 1: number of years, the chat CHEPD moment taught us that,

720
00:33:56,880 --> 00:33:58,920
Speaker 1: oh my gosh, the capability of what this can do

721
00:33:59,000 --> 00:34:01,760
Speaker 1: going forward has gone up a level. And I think

722
00:34:01,800 --> 00:34:04,160
Speaker 1: we've seen that over and over in our industry. There

723
00:34:04,200 --> 00:34:07,240
Speaker 1: tends to be lightning bolt moments that greatly accelerate the

724
00:34:07,240 --> 00:34:09,840
Speaker 1: adoption of technology, and I think with AI, as you

725
00:34:09,880 --> 00:34:13,360
Speaker 1: move towards AGI computers that can think, I think we

726
00:34:13,440 --> 00:34:16,279
Speaker 1: now have seen an accelerant for that ultimately down the

727
00:34:16,320 --> 00:34:18,799
Speaker 1: road how people make money off that. It'll get figured out.

728
00:34:19,600 --> 00:34:22,359
Speaker 1: But AI is here to stay. That's unquestionable.

729
00:34:22,640 --> 00:34:25,959
Speaker 4: And it seems as though you're integral to SoftBank's vision

730
00:34:26,040 --> 00:34:30,719
Speaker 4: of AI and Massa's vision of AI. How can you

731
00:34:30,719 --> 00:34:32,800
Speaker 4: announce it a little bit? You say, talking to him daily,

732
00:34:33,080 --> 00:34:36,080
Speaker 4: what his vision of ARM within the ecosystem going forward

733
00:34:36,080 --> 00:34:36,560
Speaker 4: really is?

734
00:34:37,680 --> 00:34:40,600
Speaker 1: He and I share a very same view that ARM

735
00:34:40,719 --> 00:34:43,960
Speaker 1: is one of the most important technology companies in our industry,

736
00:34:44,200 --> 00:34:47,000
Speaker 1: foundational if you will, and I would like to see

737
00:34:47,080 --> 00:34:49,000
Speaker 1: us over the next five to ten years really be

738
00:34:49,080 --> 00:34:51,800
Speaker 1: recognized that way, and he and I are very aligned

739
00:34:51,840 --> 00:34:53,799
Speaker 1: on that. As you can imagine when you think about

740
00:34:53,800 --> 00:34:55,839
Speaker 1: five to ten years out, there's a lot of things

741
00:34:55,840 --> 00:34:57,560
Speaker 1: to talk about in terms of the art of the possible,

742
00:34:57,680 --> 00:34:59,920
Speaker 1: but that's really where he's focused on when his conversation

743
00:35:00,120 --> 00:35:00,399
Speaker 1: with me.

744
00:35:01,160 --> 00:35:03,960
Speaker 4: Long term thinking but then near term action. We understand

745
00:35:04,040 --> 00:35:08,200
Speaker 4: he was pretty integral to calling the shots on price

746
00:35:08,239 --> 00:35:12,120
Speaker 4: points for today's listing. How was that as just an

747
00:35:12,120 --> 00:35:14,480
Speaker 4: IPO experience? Did he end up being like, no, we

748
00:35:14,520 --> 00:35:15,959
Speaker 4: need to leave a little bit of money on the table.

749
00:35:16,000 --> 00:35:17,320
Speaker 4: This needs to be a successful trade.

750
00:35:17,440 --> 00:35:19,479
Speaker 1: But all I can say is. This is my first

751
00:35:19,560 --> 00:35:22,520
Speaker 1: road show, so everything was altering experience. We wanted to

752
00:35:22,520 --> 00:35:23,680
Speaker 1: be at the high end of the range that we

753
00:35:23,760 --> 00:35:25,640
Speaker 1: set forty seven to fifty one, and that's where it

754
00:35:25,760 --> 00:35:27,359
Speaker 1: ended up. So we're happy.

755
00:35:27,440 --> 00:35:28,520
Speaker 13: We're very thrilled with today.

756
00:35:29,080 --> 00:35:31,560
Speaker 4: You said that school friends are going to in touch

757
00:35:31,680 --> 00:35:34,640
Speaker 4: can why have you been hiding this from them? How

758
00:35:34,640 --> 00:35:37,560
Speaker 4: do you feel differently now as a CEO of a

759
00:35:37,600 --> 00:35:40,560
Speaker 4: publicly traded company? Do you feel differently today?

760
00:35:41,680 --> 00:35:43,600
Speaker 1: I feel a little bit differently, and looking ahead at

761
00:35:43,600 --> 00:35:45,439
Speaker 1: this number than what the share price is, that wasn't

762
00:35:45,440 --> 00:35:49,319
Speaker 1: something we looked at before. But you know again when

763
00:35:49,480 --> 00:35:52,120
Speaker 1: and I told this to employees. While the IPO is

764
00:35:52,160 --> 00:35:54,239
Speaker 1: amazing and I could not be more proud of it,

765
00:35:54,640 --> 00:35:56,279
Speaker 1: I am far more excited about the next five to

766
00:35:56,280 --> 00:35:58,920
Speaker 1: ten years and that's where my head is focused. Obviously

767
00:35:58,920 --> 00:36:02,520
Speaker 1: we needed things as a public company CEO, but I

768
00:36:02,520 --> 00:36:03,640
Speaker 1: don't feel too much different.

769
00:36:03,960 --> 00:36:06,839
Speaker 4: And sometimes these are marketing exercises.

770
00:36:07,160 --> 00:36:07,880
Speaker 7: Armor is B to B.

771
00:36:08,680 --> 00:36:11,400
Speaker 4: But do you think you've become more relevant B to

772
00:36:11,480 --> 00:36:13,840
Speaker 4: see now you're saying how people had no idea all

773
00:36:13,880 --> 00:36:16,560
Speaker 4: this because largely people don't realize that every day they

774
00:36:16,560 --> 00:36:19,920
Speaker 4: are interacting with your designs with your blueprints.

775
00:36:20,320 --> 00:36:22,360
Speaker 1: The people who need to know what we do do

776
00:36:22,520 --> 00:36:24,520
Speaker 1: know obviously, just giving the fact that all the global

777
00:36:24,520 --> 00:36:27,200
Speaker 1: partners that we work with going forward, how to market

778
00:36:27,200 --> 00:36:28,920
Speaker 1: ourselves as the public company. That's one of the things

779
00:36:28,960 --> 00:36:31,920
Speaker 1: as a public company CEO I'll spend some time thinking about.

780
00:36:32,680 --> 00:36:35,040
Speaker 1: But right now we're just kind of focused on today

781
00:36:35,239 --> 00:36:35,960
Speaker 1: and what that means.

782
00:36:36,239 --> 00:36:40,200
Speaker 4: And meanwhile, within this exuberance of today, yesterday we saw

783
00:36:40,280 --> 00:36:44,120
Speaker 4: basically every key chief executive of an AI company, AI

784
00:36:44,160 --> 00:36:49,280
Speaker 4: related company, indoors and a closed hearing with Senate Majority

785
00:36:49,360 --> 00:36:52,160
Speaker 4: Leader Chuck Schumer. Can you tell us about regulation? How

786
00:36:52,200 --> 00:36:55,040
Speaker 4: do you see the landscape evolving to ensure that you

787
00:36:55,080 --> 00:36:56,520
Speaker 4: can harness that AI moment.

788
00:36:57,000 --> 00:37:00,200
Speaker 1: I think it's one of those areas that is an

789
00:37:00,239 --> 00:37:03,200
Speaker 1: unknown moment. And I remember talking to an executive about

790
00:37:03,480 --> 00:37:06,120
Speaker 1: the analogy or metaphor we used was when cars were invented,

791
00:37:06,280 --> 00:37:08,960
Speaker 1: you didn't have driver's licenses, you didn't have lanes, you

792
00:37:09,000 --> 00:37:10,920
Speaker 1: didn't have rules of the road. There was a lot

793
00:37:10,960 --> 00:37:12,640
Speaker 1: of things that people had to figure out in terms

794
00:37:12,680 --> 00:37:15,080
Speaker 1: of taking a device that was going to be very

795
00:37:15,160 --> 00:37:17,440
Speaker 1: very productive but could be very dangerous in terms of

796
00:37:17,560 --> 00:37:20,520
Speaker 1: automobile accidents, AI is a little bit of the same

797
00:37:20,520 --> 00:37:22,960
Speaker 1: in the sense that we're now in a new paradigm

798
00:37:23,200 --> 00:37:26,279
Speaker 1: where some rules and regulations need to be figured out,

799
00:37:26,320 --> 00:37:28,040
Speaker 1: and that's why I think you're seeing all this activity

800
00:37:28,040 --> 00:37:30,080
Speaker 1: around that area.

801
00:37:30,320 --> 00:37:33,440
Speaker 4: Is the US leading the charge and regulation?

802
00:37:33,719 --> 00:37:34,280
Speaker 3: Is Europe?

803
00:37:34,360 --> 00:37:35,879
Speaker 4: Is the UK was getting it right?

804
00:37:35,880 --> 00:37:38,160
Speaker 1: From your perspective, I think all the governments are trying

805
00:37:38,160 --> 00:37:40,200
Speaker 1: to figure it out. I know the EU has spent

806
00:37:40,239 --> 00:37:41,919
Speaker 1: a lot of energy on this, as had the UK.

807
00:37:42,120 --> 00:37:44,160
Speaker 1: So in terms of who's getting it right, I think

808
00:37:44,200 --> 00:37:47,279
Speaker 1: it's still early days and everyone's really just trying to

809
00:37:47,360 --> 00:37:51,520
Speaker 1: learn how technology and this new powerful algorithm will work together.

810
00:37:52,000 --> 00:37:54,239
Speaker 7: Keep teaching us. Great to have some time with you.

811
00:37:54,320 --> 00:37:54,960
Speaker 5: Thank you so much.

812
00:37:54,960 --> 00:37:57,360
Speaker 4: Across the CEO of ARM the day of their listing,

813
00:37:57,400 --> 00:38:00,880
Speaker 4: I'm looking at the price point. I'm seventeen percent headipop

814
00:38:01,000 --> 00:38:01,760
Speaker 4: for the day's trading.

815
00:38:01,800 --> 00:38:05,720
Speaker 2: Sanali absolutely, Caroline and Renee has armed CEO first roadshow.

816
00:38:05,760 --> 00:38:06,879
Speaker 3: Thank you very much for your time.

817
00:38:07,160 --> 00:38:10,240
Speaker 2: Now let's bring in Aja Shah, Deutsche Bank's managing director

818
00:38:10,280 --> 00:38:14,040
Speaker 2: and co head of Technology, Media and Telecommunications for Deutsche Bank,

819
00:38:14,080 --> 00:38:14,840
Speaker 2: one of the end writers.

820
00:38:14,840 --> 00:38:16,640
Speaker 3: As we've been talking about, you know, at first.

821
00:38:16,520 --> 00:38:19,480
Speaker 2: One would to react here to what Renee had to say,

822
00:38:19,680 --> 00:38:23,719
Speaker 2: because he did talk about this idea that people will

823
00:38:23,719 --> 00:38:28,560
Speaker 2: pay for AI related stocks and companies eventually. But we

824
00:38:28,640 --> 00:38:32,200
Speaker 2: are in a different era than that hypergrowth, unprofitable type

825
00:38:32,200 --> 00:38:34,920
Speaker 2: of company. You had a profit at ARM, it was slowing.

826
00:38:35,280 --> 00:38:39,200
Speaker 2: What is investor appetite for anything but upward trajectory?

827
00:38:40,880 --> 00:38:42,959
Speaker 13: Yeah, thanks for having me on the show.

828
00:38:43,480 --> 00:38:46,319
Speaker 14: Look, you know, we have we have definitely seen an

829
00:38:46,360 --> 00:38:50,000
Speaker 14: increase in activity on the on the capital market side,

830
00:38:50,320 --> 00:38:52,480
Speaker 14: certainly post Labor Day. You know, there was a lot

831
00:38:52,480 --> 00:38:57,319
Speaker 14: ofventive demand and expectation that the markets would open and

832
00:38:57,440 --> 00:39:00,480
Speaker 14: armwouldn't need to open the market to the i P

833
00:39:00,600 --> 00:39:03,359
Speaker 14: as you've seen the obviously the i PO has done

834
00:39:03,760 --> 00:39:06,120
Speaker 14: very well so far, and and ARM is really a

835
00:39:06,160 --> 00:39:10,120
Speaker 14: play on interesting demand for advanced processing needed to support AI.

836
00:39:10,239 --> 00:39:12,560
Speaker 14: And you obviously just heart run a you know walk

837
00:39:12,640 --> 00:39:15,400
Speaker 14: through uh some of the some of the key you

838
00:39:15,440 --> 00:39:18,000
Speaker 14: know highlights around ARM and why you know people are

839
00:39:18,600 --> 00:39:22,080
Speaker 14: you know so much interested in investing in ARM. We

840
00:39:22,200 --> 00:39:25,400
Speaker 14: have certainly seen uh, you know, the markets sort of

841
00:39:25,440 --> 00:39:28,080
Speaker 14: change the down't from as you said, you know, growth

842
00:39:28,080 --> 00:39:32,000
Speaker 14: at any cause to growth at you know, with with

843
00:39:32,000 --> 00:39:36,839
Speaker 14: with profitability and so I think investors have been doing work.

844
00:39:36,920 --> 00:39:38,799
Speaker 14: They have done a lot of work around ARM, They've

845
00:39:38,800 --> 00:39:41,880
Speaker 14: done work around some of the other i pos that

846
00:39:42,239 --> 00:39:44,640
Speaker 14: came to market earlier this year. Can view on the

847
00:39:44,680 --> 00:39:48,000
Speaker 14: consumer side obviously ARM and in tech, and we've seen

848
00:39:48,040 --> 00:39:51,760
Speaker 14: investors do work and you know, they are still obviously

849
00:39:51,880 --> 00:39:55,719
Speaker 14: still sensitive on valuation, but but there is clear appetite

850
00:39:55,719 --> 00:39:59,279
Speaker 14: to to pay for growth with with profitability. We have

851
00:39:59,320 --> 00:40:03,000
Speaker 14: a robust pipeline of some of these i pos you

852
00:40:03,040 --> 00:40:03,880
Speaker 14: know that are.

853
00:40:03,880 --> 00:40:06,360
Speaker 2: Yet to come right on that pipeline. The reality is

854
00:40:06,400 --> 00:40:08,000
Speaker 2: there's not that much time left in the year. You

855
00:40:08,040 --> 00:40:09,799
Speaker 2: really have to file pretty soon if you're going to

856
00:40:09,800 --> 00:40:14,080
Speaker 2: go public. So is the pipeline into next year much bigger?

857
00:40:14,520 --> 00:40:17,960
Speaker 2: Is it still quite muted given the dynamics we're seeing

858
00:40:17,960 --> 00:40:20,440
Speaker 2: in the market. There's still a lot of macro uncertainties

859
00:40:20,440 --> 00:40:20,920
Speaker 2: out there.

860
00:40:22,360 --> 00:40:25,640
Speaker 14: Sure, the pipeline is is big, and it is getting

861
00:40:25,640 --> 00:40:29,120
Speaker 14: bigger by the day. Obviously, with ARMS successful IPO, I

862
00:40:29,160 --> 00:40:31,800
Speaker 14: think you'll see a lot more companies come to market,

863
00:40:32,120 --> 00:40:35,520
Speaker 14: certainly between now and the end of the year and getting.

864
00:40:35,280 --> 00:40:35,839
Speaker 13: Up for next year.

865
00:40:35,880 --> 00:40:40,160
Speaker 14: We're seeing you know, all across the tech ecosystem. You know,

866
00:40:40,200 --> 00:40:42,200
Speaker 14: on the on the internet side, there are companies like

867
00:40:42,400 --> 00:40:45,680
Speaker 14: Reddit or two ro Go Pop. In fintech, we've seen,

868
00:40:45,960 --> 00:40:50,240
Speaker 14: you know, expectations around Stripe and Plaid. On the software side,

869
00:40:50,280 --> 00:40:53,080
Speaker 14: you know you've Genesis, You've got UKG, Rubric and others.

870
00:40:53,280 --> 00:40:57,520
Speaker 14: And even on the semiconductor space, after you know Armed success,

871
00:40:57,800 --> 00:41:00,799
Speaker 14: there are companies that you know, we're certainly like to

872
00:41:01,000 --> 00:41:06,040
Speaker 14: access the market, companies like an mpror Steri Labs and others.

873
00:41:06,400 --> 00:41:09,360
Speaker 14: So the pipeline is robust and we will see the

874
00:41:09,400 --> 00:41:12,839
Speaker 14: pipeline grow going forward. Obviously it is going to depend

875
00:41:12,880 --> 00:41:15,640
Speaker 14: on how Armed does UH. You know, how investors feel

876
00:41:15,680 --> 00:41:19,480
Speaker 14: about the overall strength of the economy and UH, and

877
00:41:19,560 --> 00:41:22,000
Speaker 14: ultimately what the FED decides to do going forward.

878
00:41:22,080 --> 00:41:23,080
Speaker 3: Is there a playbook here?

879
00:41:23,480 --> 00:41:25,600
Speaker 2: On one hand, you did see them kind of tamper

880
00:41:25,680 --> 00:41:26,919
Speaker 2: down expectations in.

881
00:41:26,920 --> 00:41:29,080
Speaker 3: Order to get this smooth debut.

882
00:41:29,560 --> 00:41:31,840
Speaker 2: On the other hand, there's a cross current that seems

883
00:41:31,840 --> 00:41:33,600
Speaker 2: to be picking its head up in the market, which

884
00:41:33,640 --> 00:41:36,200
Speaker 2: is M and A. Is there a reality that MNA

885
00:41:36,320 --> 00:41:38,680
Speaker 2: can meaningfully compete with the I P O markets?

886
00:41:38,680 --> 00:41:40,759
Speaker 3: And what will give a company about our ex evaluation?

887
00:41:42,440 --> 00:41:44,920
Speaker 14: Yeah, so the M and A market has has slowed

888
00:41:44,960 --> 00:41:49,080
Speaker 14: down this year relative two years past. And you know,

889
00:41:49,120 --> 00:41:53,560
Speaker 14: with with the IPO market you know, showing signs of opening, uh,

890
00:41:53,719 --> 00:41:57,200
Speaker 14: that is a real competition to you know, companies looking

891
00:41:57,200 --> 00:42:01,359
Speaker 14: to acquire. So I do see the opportunity for MNA

892
00:42:01,440 --> 00:42:04,840
Speaker 14: also to increase going forward. Again, not just because the

893
00:42:04,840 --> 00:42:09,280
Speaker 14: IPEO market is strong, but also valuations are you know increasing,

894
00:42:09,400 --> 00:42:12,120
Speaker 14: They're stronger than what they were last year.

895
00:42:12,440 --> 00:42:15,160
Speaker 13: We've seen you know, SMP of seventeen percent, nas.

896
00:42:15,040 --> 00:42:17,960
Speaker 14: Tap up thirty two percent, the Vicks Volatility Index is

897
00:42:18,000 --> 00:42:21,920
Speaker 14: down forty percent, and so I think those are factors

898
00:42:21,920 --> 00:42:24,839
Speaker 14: that certainly corporates look at when they think about MNA.

899
00:42:25,320 --> 00:42:28,160
Speaker 14: And now there is a real option for companies to

900
00:42:27,560 --> 00:42:32,799
Speaker 14: go public, So we do expect companies to start, you know,

901
00:42:32,840 --> 00:42:35,399
Speaker 14: looking at more corporate am and if we've seen some

902
00:42:35,600 --> 00:42:38,560
Speaker 14: financial sponsors and private equity deals happen in the market,

903
00:42:38,640 --> 00:42:41,920
Speaker 14: we haven't seen as many corporate MNA. But again with

904
00:42:41,960 --> 00:42:44,560
Speaker 14: the robustness in the market and the economy is starting

905
00:42:44,600 --> 00:42:48,160
Speaker 14: to starting to grow, we do expect m and.

906
00:42:48,160 --> 00:42:50,080
Speaker 13: A market also to pick up pretty martially in the

907
00:42:50,080 --> 00:42:50,480
Speaker 13: next year.

908
00:42:50,600 --> 00:42:52,960
Speaker 2: Also think about here is that this is not a

909
00:42:53,080 --> 00:42:56,200
Speaker 2: US based company but listed in the United States now

910
00:42:56,520 --> 00:42:59,040
Speaker 2: are you scouring the globe for hopeful.

911
00:42:58,719 --> 00:43:00,360
Speaker 3: Is just given that valuation.

912
00:43:00,120 --> 00:43:02,680
Speaker 2: Might be more reasonable outside of the United States.

913
00:43:03,920 --> 00:43:09,359
Speaker 14: Absolutely, there are you know, several companies obviously in Asia and.

914
00:43:09,320 --> 00:43:11,239
Speaker 13: Europe that have been waiting.

915
00:43:11,200 --> 00:43:13,560
Speaker 14: For ARM and a few other IPOs that will come

916
00:43:13,600 --> 00:43:16,080
Speaker 14: out between now and the end of the year, and

917
00:43:16,440 --> 00:43:20,799
Speaker 14: we will see increase in certainly either cross border listings

918
00:43:20,960 --> 00:43:24,719
Speaker 14: or just listing in Europe and Asia. But we are

919
00:43:25,320 --> 00:43:27,880
Speaker 14: working with a handful of companies that are looking to

920
00:43:27,920 --> 00:43:31,000
Speaker 14: go public, you know, across both sides of the of

921
00:43:31,080 --> 00:43:31,600
Speaker 14: the continent.

922
00:43:32,280 --> 00:43:33,200
Speaker 3: That is Aj Shah.

923
00:43:33,239 --> 00:43:36,640
Speaker 2: He's managing director and co head of TMT for Deutsche

924
00:43:36,680 --> 00:43:38,799
Speaker 2: Bank's investment banks. Thank you very much for your time

925
00:43:39,040 --> 00:43:41,640
Speaker 2: now joining us here in studios. Cameron, I'm sorry he's

926
00:43:41,760 --> 00:43:45,200
Speaker 2: headlined Venture Capital Partner for his read on the IPO

927
00:43:45,320 --> 00:43:48,640
Speaker 2: landscape and other paths to exit. We've been talking here

928
00:43:48,760 --> 00:43:51,960
Speaker 2: about IPOs versus M and A. There's another question I

929
00:43:52,000 --> 00:43:54,760
Speaker 2: wanted to ask you, though there's been a lot of fireworks.

930
00:43:54,320 --> 00:43:56,759
Speaker 3: About this idea of VC's holding on too long.

931
00:43:56,760 --> 00:43:59,439
Speaker 2: When you go into public markets, how do you see

932
00:43:59,440 --> 00:44:01,319
Speaker 2: that playing. Do you think that there will be more

933
00:44:01,320 --> 00:44:04,520
Speaker 2: willingness to start to sell into an IPO rather than

934
00:44:04,560 --> 00:44:06,439
Speaker 2: hold on and clip the games over time.

935
00:44:07,200 --> 00:44:08,640
Speaker 15: Yeah, I mean, I think that you're going to see

936
00:44:08,920 --> 00:44:10,840
Speaker 15: in their arm case, you really only have one seller,

937
00:44:10,840 --> 00:44:13,719
Speaker 15: which is soft Bank, and it's not a traditional venture

938
00:44:13,719 --> 00:44:15,800
Speaker 15: backed IPO though the way they might consider you, SoftBank

939
00:44:15,840 --> 00:44:17,640
Speaker 15: take a private seven years ago and is bringing it

940
00:44:17,680 --> 00:44:18,520
Speaker 15: back out now today.

941
00:44:19,160 --> 00:44:20,600
Speaker 5: We have a couple other companies.

942
00:44:20,280 --> 00:44:23,120
Speaker 15: Coming up this week or the next ten days, Claveyo

943
00:44:23,239 --> 00:44:27,480
Speaker 15: and Instacart, which are both venture backed startups quote unquote

944
00:44:27,480 --> 00:44:29,319
Speaker 15: in the traditional sense, and I think in both those

945
00:44:29,360 --> 00:44:32,680
Speaker 15: cases you'll see the venture investors selling into the IPO

946
00:44:32,719 --> 00:44:34,160
Speaker 15: in a meaningful way. But it's also going to be

947
00:44:34,160 --> 00:44:36,839
Speaker 15: a liquidity event for the company and the employees as

948
00:44:36,880 --> 00:44:38,680
Speaker 15: well as a fundraising event. Right It's an event for

949
00:44:38,719 --> 00:44:41,560
Speaker 15: the company to actually raise funds and capital so they

950
00:44:41,560 --> 00:44:42,799
Speaker 15: can show up the balance sheet as well.

951
00:44:42,800 --> 00:44:44,640
Speaker 2: It's been a bit of a strange year when you

952
00:44:44,680 --> 00:44:46,920
Speaker 2: think about the hopefuls and companies that are going public.

953
00:44:46,920 --> 00:44:48,240
Speaker 3: There is some hope around fintech.

954
00:44:48,280 --> 00:44:50,720
Speaker 2: There's a lot of consumer there's a lot of food

955
00:44:50,760 --> 00:44:54,960
Speaker 2: and delivery, But how much is AI the real silver bullet.

956
00:44:55,160 --> 00:44:57,600
Speaker 2: Do you think that it's a red herring or do

957
00:44:57,680 --> 00:45:01,040
Speaker 2: you think that there's more opportunity else well, arm.

958
00:45:01,080 --> 00:45:02,760
Speaker 15: Is one of the only playees right now for consumers

959
00:45:02,760 --> 00:45:05,759
Speaker 15: and retail investors as well as investors generally to play

960
00:45:05,760 --> 00:45:09,080
Speaker 15: into the AI kind of theme. Other than maybe owning

961
00:45:09,200 --> 00:45:11,320
Speaker 15: Microsoft as that passed through to open ai or Google

962
00:45:11,320 --> 00:45:13,880
Speaker 15: as have passed through to Bard or in vidio. Right

963
00:45:13,920 --> 00:45:18,000
Speaker 15: there really aren't many public opportunities to play the kind

964
00:45:18,000 --> 00:45:20,400
Speaker 15: of boom and AI. But I do think it's a

965
00:45:20,440 --> 00:45:21,839
Speaker 15: little bit of red herring and that there's a lot

966
00:45:21,840 --> 00:45:23,600
Speaker 15: of opportunities elsewhere, and a lot of the companies that

967
00:45:23,640 --> 00:45:25,799
Speaker 15: are going to be listening and coming out, including klavy

968
00:45:25,880 --> 00:45:28,440
Speaker 15: on instacart and you know, we talked about Reddit or

969
00:45:28,480 --> 00:45:30,279
Speaker 15: Intercom or data Bricks or some of these companies that

970
00:45:30,320 --> 00:45:33,040
Speaker 15: are coming out. They're not AI businesses per se, they're

971
00:45:33,120 --> 00:45:35,120
Speaker 15: terrific companies and they're going to do very well. And

972
00:45:35,160 --> 00:45:36,880
Speaker 15: I think the one that in the tech space, in

973
00:45:36,920 --> 00:45:38,239
Speaker 15: the fintech space where I spend a lot of time,

974
00:45:38,239 --> 00:45:39,560
Speaker 15: everyone's waiting for is Stripe.

975
00:45:39,760 --> 00:45:41,040
Speaker 5: Some I think Stripe is going to be the big

976
00:45:41,080 --> 00:45:43,319
Speaker 5: bell weather, but that's not likely.

977
00:45:43,239 --> 00:45:44,839
Speaker 3: To happen when you think it actually goes.

978
00:45:45,200 --> 00:45:48,040
Speaker 15: Who knows, right, they raised the massive fundraising round very

979
00:45:48,040 --> 00:45:51,120
Speaker 15: recently at a steep discount, about a fifty percent discount.

980
00:45:51,120 --> 00:45:53,640
Speaker 15: They were previously priced at ninety five billion. They raised

981
00:45:53,640 --> 00:45:55,799
Speaker 15: it about fifty billion to really shore up the balance

982
00:45:55,840 --> 00:45:59,080
Speaker 15: sheet and also primarily to incentivize employees and keep them

983
00:45:59,120 --> 00:46:01,360
Speaker 15: around because of a stock option plan that was expiring.

984
00:46:02,000 --> 00:46:03,839
Speaker 15: So with that fundraise, I think they have a lot

985
00:46:03,840 --> 00:46:06,319
Speaker 15: more runway now. So I'm guessing that's easily going to

986
00:46:06,320 --> 00:46:08,319
Speaker 15: be well into twenty twenty four before Stripe is going

987
00:46:08,360 --> 00:46:08,799
Speaker 15: to come out.

988
00:46:08,960 --> 00:46:11,680
Speaker 2: Now, you think about Instacart, and it is a big

989
00:46:11,719 --> 00:46:14,680
Speaker 2: win for some of the early investors, including D one

990
00:46:14,920 --> 00:46:17,920
Speaker 2: where D one Dan Sundeim for example, they had a

991
00:46:18,040 --> 00:46:21,040
Speaker 2: roughly sixty percent of their assets invested in venture.

992
00:46:20,760 --> 00:46:23,360
Speaker 3: Capital and private equity. It's been a drag on returns.

993
00:46:23,480 --> 00:46:25,479
Speaker 2: When you look at those crossover funds, those big hedge

994
00:46:25,480 --> 00:46:27,560
Speaker 2: funds that have come into the market, what role do

995
00:46:27,600 --> 00:46:29,840
Speaker 2: you think that they play, not that they're finally starting

996
00:46:29,880 --> 00:46:30,760
Speaker 2: to exit a little.

997
00:46:30,520 --> 00:46:32,680
Speaker 15: More well going forward, and really this year it's been

998
00:46:32,760 --> 00:46:34,279
Speaker 15: very quiet with those guys. You know, we used to

999
00:46:34,320 --> 00:46:36,440
Speaker 15: see Tiger and ko Tu and soft Bank and a

1000
00:46:36,480 --> 00:46:38,920
Speaker 15: lot of these funds coming into earlier stage opportunities in

1001
00:46:38,920 --> 00:46:41,120
Speaker 15: the venture space, sometimes even like seed deals, which is

1002
00:46:41,239 --> 00:46:43,920
Speaker 15: very strange. They've been pretty quiet, and you're also hearing

1003
00:46:43,960 --> 00:46:45,760
Speaker 15: about some of those funds trying to sell their positions

1004
00:46:45,840 --> 00:46:48,560
Speaker 15: or package up all the positions in a secondary So

1005
00:46:48,600 --> 00:46:50,279
Speaker 15: I think going forward, you know, I expect to see

1006
00:46:50,320 --> 00:46:53,040
Speaker 15: less of those folks coming into really early stage venture deals.

1007
00:46:53,360 --> 00:46:55,239
Speaker 15: But you know, in the case of instacart, you also

1008
00:46:55,280 --> 00:46:58,120
Speaker 15: have you know, one of the greatest venture funds, Sequoya

1009
00:46:58,280 --> 00:46:59,200
Speaker 15: is one of the major holders.

1010
00:46:59,239 --> 00:47:00,759
Speaker 5: You have traditional venture firms in there as.

1011
00:47:00,680 --> 00:47:03,239
Speaker 15: Well that'll be looking to hopefully, you know, I think

1012
00:47:03,239 --> 00:47:04,320
Speaker 15: get out as part of the IPO.

1013
00:47:04,760 --> 00:47:06,360
Speaker 2: Now as they get out, how do you think that

1014
00:47:06,440 --> 00:47:09,319
Speaker 2: changes the dynamic around valuations given we've seen so many

1015
00:47:09,360 --> 00:47:11,960
Speaker 2: down rounds already this year, Well.

1016
00:47:11,719 --> 00:47:13,680
Speaker 15: It's you know, it's been a market reset, right And

1017
00:47:13,719 --> 00:47:15,120
Speaker 15: in the case of instat cart, I think the last

1018
00:47:15,160 --> 00:47:17,520
Speaker 15: private round was in the thirty nine billion range. I

1019
00:47:17,560 --> 00:47:19,960
Speaker 15: think they've priced it very attractively, frankly at nine billion,

1020
00:47:19,960 --> 00:47:21,759
Speaker 15: which is actually if you look at the comp which

1021
00:47:21,800 --> 00:47:24,719
Speaker 15: is door Dash, which trades it four times revenue.

1022
00:47:25,200 --> 00:47:27,120
Speaker 5: Instacart's around a three billion dollar revenue business.

1023
00:47:27,120 --> 00:47:28,919
Speaker 15: So the fair price should probably be closer to eleven

1024
00:47:28,920 --> 00:47:30,680
Speaker 15: to twelve billion, So I think pricing it at nine

1025
00:47:31,000 --> 00:47:32,160
Speaker 15: leads room for upside.

1026
00:47:32,800 --> 00:47:33,520
Speaker 5: But it's a.

1027
00:47:33,520 --> 00:47:35,440
Speaker 15: Vast reset, right, and we've seen that with Stripe, with

1028
00:47:35,520 --> 00:47:37,759
Speaker 15: Klarna on in the private markets as well as in

1029
00:47:37,760 --> 00:47:38,560
Speaker 15: the public market scene.

1030
00:47:38,560 --> 00:47:39,960
Speaker 5: Of the companies like like PayPal and.

1031
00:47:39,920 --> 00:47:42,640
Speaker 15: Square Block, they're all down sixty seventy percent from their

1032
00:47:42,640 --> 00:47:43,680
Speaker 15: twenty twenty one highs.

1033
00:47:43,920 --> 00:47:45,440
Speaker 5: I think that's consistent across the board.

1034
00:47:45,640 --> 00:47:47,719
Speaker 2: You look at what you're seeing in ARM today, you're

1035
00:47:47,760 --> 00:47:49,800
Speaker 2: looking at almost a twenty percent pop, more than seventeen

1036
00:47:49,800 --> 00:47:50,400
Speaker 2: percent pop.

1037
00:47:50,280 --> 00:47:50,720
Speaker 3: At the moment.

1038
00:47:51,000 --> 00:47:53,600
Speaker 2: It has been trading in and around more than twenty times.

1039
00:47:53,640 --> 00:47:57,280
Speaker 2: It's trailing as sales. Do you look at these companies

1040
00:47:57,280 --> 00:47:59,959
Speaker 2: and say that's achievable or is that a one off?

1041
00:48:00,360 --> 00:48:02,600
Speaker 15: I think ARM itself is really a one off in

1042
00:48:02,680 --> 00:48:04,919
Speaker 15: terms of the type of company. It is that again,

1043
00:48:04,960 --> 00:48:07,640
Speaker 15: the play on AI and the current moment, the size

1044
00:48:07,680 --> 00:48:09,560
Speaker 15: and scale the business, the partners they have. We have

1045
00:48:09,600 --> 00:48:12,720
Speaker 15: these very stable relationships with folks like Samsung and Google

1046
00:48:12,719 --> 00:48:15,440
Speaker 15: and Apple, so you know, at the same time it's

1047
00:48:15,480 --> 00:48:17,799
Speaker 15: a slow growth business and a high growth sector, right,

1048
00:48:17,800 --> 00:48:20,400
Speaker 15: They're not really growing right now. They've had kind of

1049
00:48:20,400 --> 00:48:22,239
Speaker 15: a flat last year and they're going to start to

1050
00:48:22,239 --> 00:48:24,239
Speaker 15: grow again this year. So the story is not a

1051
00:48:24,239 --> 00:48:27,280
Speaker 15: perfect story. And yet you're saying and obviously a fifteen

1052
00:48:27,360 --> 00:48:31,200
Speaker 15: twenty percent a pop as already happening, but you know

1053
00:48:31,200 --> 00:48:33,560
Speaker 15: there are also non tech names coming out. We started

1054
00:48:33,560 --> 00:48:36,239
Speaker 15: this IPO kind of waive these last few months with

1055
00:48:36,280 --> 00:48:38,120
Speaker 15: Kava so too, kind of peta and hummus to get

1056
00:48:38,200 --> 00:48:40,560
Speaker 15: us here. And now you know, I heard yesterday you

1057
00:48:40,560 --> 00:48:42,520
Speaker 15: saw on the news that Birkenstock's coming out, So again

1058
00:48:42,520 --> 00:48:45,160
Speaker 15: a non tech name that's going to come out, and

1059
00:48:45,239 --> 00:48:46,439
Speaker 15: I think drive interest as well.

1060
00:48:46,520 --> 00:48:49,960
Speaker 2: It's no secret Birkenstocks is now my new IPO attire.

1061
00:48:50,040 --> 00:48:52,320
Speaker 5: More than to work there, b Birkenstock WI would be

1062
00:48:52,320 --> 00:48:52,959
Speaker 5: a public stock.

1063
00:48:53,160 --> 00:48:55,719
Speaker 2: Yeah, absolutely, the cameraon I'm sorry headline Benure partner. We

1064
00:48:55,760 --> 00:48:57,799
Speaker 2: thank you so very much for your time. Now let's

1065
00:48:57,800 --> 00:49:00,239
Speaker 2: take it home with Bloomberg's Caroline Hyde, who's been on

1066
00:49:00,280 --> 00:49:02,800
Speaker 2: the ground at NAZAC for us, looking at that fifteen

1067
00:49:02,840 --> 00:49:06,400
Speaker 2: percent or so pup at the arm IPO just right out.

1068
00:49:06,239 --> 00:49:09,320
Speaker 3: Of the gate just about an hour ago. What's next?

1069
00:49:09,880 --> 00:49:13,680
Speaker 4: Yeah, what's next? Trevio Instacart, all of the eyes on

1070
00:49:13,800 --> 00:49:16,120
Speaker 4: these companies coming next week, and they're going to be

1071
00:49:16,120 --> 00:49:17,520
Speaker 4: from the NASZAC, They're going to be from the New

1072
00:49:17,560 --> 00:49:19,719
Speaker 4: York Stock Exchange. There is going to continue to be

1073
00:49:19,800 --> 00:49:22,080
Speaker 4: an eye on really how this company continues to perform.

1074
00:49:22,120 --> 00:49:24,400
Speaker 4: We know that there's e xuberants around the first day

1075
00:49:24,440 --> 00:49:28,000
Speaker 4: of trade. How does ARM manage to continue this narrative

1076
00:49:28,120 --> 00:49:30,880
Speaker 4: of growth in the face of China. I thought that

1077
00:49:30,960 --> 00:49:33,279
Speaker 4: was notable from Rene has talking about, Look, it's the

1078
00:49:33,280 --> 00:49:35,719
Speaker 4: same headache as every other CEO who's exposed to China

1079
00:49:35,800 --> 00:49:36,520
Speaker 4: is currently having.

1080
00:49:36,680 --> 00:49:37,240
Speaker 7: I think it's.

1081
00:49:37,080 --> 00:49:39,880
Speaker 4: Also and the road for ARM and destiny really interesting

1082
00:49:39,880 --> 00:49:42,120
Speaker 4: that he told us that they are potentially yeing a

1083
00:49:42,239 --> 00:49:44,920
Speaker 4: UK listing, so a secondary listening at some point. That

1084
00:49:45,000 --> 00:49:46,480
Speaker 4: was news that they gave to us. So I think

1085
00:49:46,520 --> 00:49:49,160
Speaker 4: that's an important step in terms of reminding everyone this

1086
00:49:49,280 --> 00:49:52,160
Speaker 4: is a global company with global exposure but also a

1087
00:49:52,239 --> 00:49:55,280
Speaker 4: global headquarters. It's UK based. And then what for SoftBank?

1088
00:49:55,400 --> 00:49:57,839
Speaker 4: Of course, this is a company now that is trying

1089
00:49:57,840 --> 00:49:59,480
Speaker 4: to show that they're back winning when it comes to

1090
00:49:59,520 --> 00:50:02,560
Speaker 4: their venture. This hasn't been a seventy percent upside for

1091
00:50:02,719 --> 00:50:05,200
Speaker 4: Masayoshi's son, and he's also taken a very hands on

1092
00:50:05,239 --> 00:50:07,719
Speaker 4: approach to how he's guided this ipo, how will the

1093
00:50:07,760 --> 00:50:10,400
Speaker 4: rest of the IPOs be able to deliver those returns

1094
00:50:10,440 --> 00:50:13,440
Speaker 4: for their vcs, and indeed managed to sustain the growth

1095
00:50:13,480 --> 00:50:16,279
Speaker 4: story and indeed managed to see a pop on the

1096
00:50:16,280 --> 00:50:18,920
Speaker 4: first day of trade. As Karen Snow from Nazlak was

1097
00:50:18,960 --> 00:50:21,719
Speaker 4: telling us Shanali, this is largely an art as well

1098
00:50:21,719 --> 00:50:23,319
Speaker 4: as a science. They try and make as much of

1099
00:50:23,360 --> 00:50:25,520
Speaker 4: a science as they can with their technology, but at

1100
00:50:25,520 --> 00:50:27,279
Speaker 4: the end of the day, this does tend to be

1101
00:50:27,320 --> 00:50:28,680
Speaker 4: an art to getting the right price point.

1102
00:50:28,920 --> 00:50:31,720
Speaker 2: Something I had heard him tell you and a haas

1103
00:50:31,880 --> 00:50:34,320
Speaker 2: was that this was his first road show. It's interesting

1104
00:50:34,400 --> 00:50:36,840
Speaker 2: because you think about the list of IPOs around the

1105
00:50:36,880 --> 00:50:38,960
Speaker 2: corner and the entrepreneurs that are trying to make it

1106
00:50:38,960 --> 00:50:42,520
Speaker 2: to market, and the role these underwriters play, some old,

1107
00:50:42,680 --> 00:50:46,080
Speaker 2: some new Goldman's big day, the fact that they're playing

1108
00:50:46,120 --> 00:50:49,120
Speaker 2: such a big role in the technology market. Mazouho just

1109
00:50:49,200 --> 00:50:51,640
Speaker 2: coming up swinging, not only in this IPO, but some

1110
00:50:51,680 --> 00:50:52,320
Speaker 2: of the ones.

1111
00:50:52,160 --> 00:50:53,280
Speaker 3: Next week as well.

1112
00:50:54,000 --> 00:50:56,040
Speaker 2: What did he tell you on the sidelines about what

1113
00:50:56,040 --> 00:50:59,240
Speaker 2: it felt like to be listing such a massive company

1114
00:50:59,640 --> 00:51:02,320
Speaker 2: in the market right now for the first time.

1115
00:51:03,120 --> 00:51:05,440
Speaker 4: I mean, I do think he's trying to keep his

1116
00:51:05,440 --> 00:51:08,600
Speaker 4: his emotions contained. And look he was where he was

1117
00:51:08,640 --> 00:51:10,759
Speaker 4: telling us that friends that you knew since college were

1118
00:51:10,760 --> 00:51:12,799
Speaker 4: getting in touch, saying they had no idea. This is

1119
00:51:12,800 --> 00:51:15,319
Speaker 4: a B to B play less than an Instacart B

1120
00:51:15,360 --> 00:51:18,120
Speaker 4: two C. And I'm sore sure Fiji over at Instacart

1121
00:51:18,160 --> 00:51:20,239
Speaker 4: is getting a lot more friends who recognize she's about

1122
00:51:20,280 --> 00:51:22,360
Speaker 4: to have the slog to get this company to go

1123
00:51:22,480 --> 00:51:26,440
Speaker 4: public as well. But notably, this has been very idiosyncratic

1124
00:51:26,440 --> 00:51:28,319
Speaker 4: in the way that they've democratized their banks, the way

1125
00:51:28,320 --> 00:51:30,480
Speaker 4: in which they've had so many underwriters. Really taking a

1126
00:51:30,520 --> 00:51:33,000
Speaker 4: leaf out of Ali Barbar's book here, how can that

1127
00:51:33,040 --> 00:51:36,120
Speaker 4: be replicated? How can they ensure so interestingly, with Instacart,

1128
00:51:36,160 --> 00:51:37,960
Speaker 4: they're going to be depending not on so much the

1129
00:51:38,000 --> 00:51:41,960
Speaker 4: institutional players and the integral players like an Apple, TSMC

1130
00:51:42,040 --> 00:51:42,799
Speaker 4: and customers.

1131
00:51:43,120 --> 00:51:43,919
Speaker 6: Instead, they're going.

1132
00:51:43,800 --> 00:51:47,040
Speaker 4: To be basing their focus on retail investor. And of

1133
00:51:47,080 --> 00:51:49,520
Speaker 4: course that's why so interestingly Sofi is coming to play

1134
00:51:49,560 --> 00:51:51,720
Speaker 4: an underwriting role there. So I'm going to be interested

1135
00:51:51,760 --> 00:51:53,759
Speaker 4: as to how they sell that narrative, not just to

1136
00:51:53,840 --> 00:51:55,640
Speaker 4: the business population, but to the public.

1137
00:51:55,680 --> 00:51:59,080
Speaker 2: Tootionally, right, Instacart would be Sofia's first underwritten IPO. Now,

1138
00:51:59,160 --> 00:52:01,760
Speaker 2: last question here for you, because down at the NASDAK

1139
00:52:01,760 --> 00:52:06,080
Speaker 2: you're also interviewing Nasdaq's executives direct listings. The business that

1140
00:52:06,120 --> 00:52:09,840
Speaker 2: includes listenings is about twenty percent of last year's total revenue.

1141
00:52:10,239 --> 00:52:13,040
Speaker 2: How do they feel about the market finally coming back?

1142
00:52:13,320 --> 00:52:16,120
Speaker 4: Boyant, God, everyone I've spoken to has a smile.

1143
00:52:15,920 --> 00:52:16,359
Speaker 6: On their face.

1144
00:52:16,400 --> 00:52:18,680
Speaker 4: They look relatively exhausting to have not sleep slept for

1145
00:52:18,719 --> 00:52:21,640
Speaker 4: a few days, but they cannot wait for this really

1146
00:52:21,680 --> 00:52:25,279
Speaker 4: pendulum to swing back open. They've totally said Karen snow

1147
00:52:25,400 --> 00:52:27,920
Speaker 4: As you were referencing head of Global Listings saying that

1148
00:52:27,960 --> 00:52:30,600
Speaker 4: there is so many companies waiting to come out. One

1149
00:52:30,680 --> 00:52:33,680
Speaker 4: hundred and fifty seven of course have filed looking to

1150
00:52:33,880 --> 00:52:36,759
Speaker 4: really access this window. She feels it could shut by

1151
00:52:37,080 --> 00:52:39,480
Speaker 4: well the twenty twenty four elections. Many want to get

1152
00:52:39,520 --> 00:52:42,920
Speaker 4: ahead of that sort of political environment. So if we

1153
00:52:42,920 --> 00:52:45,400
Speaker 4: can sustain some sort of lack of volatility in the

1154
00:52:45,440 --> 00:52:48,560
Speaker 4: markets and some appetite for these companies coming forward, there

1155
00:52:48,640 --> 00:52:50,399
Speaker 4: is a whole host of companies that want to start

1156
00:52:50,400 --> 00:52:51,919
Speaker 4: listening and want to start listening soon.

1157
00:52:52,080 --> 00:52:55,160
Speaker 2: Yeah, that timeline certainly makes sense let alone, the October

1158
00:52:55,200 --> 00:52:57,600
Speaker 2: government shutdown, and a whole host of other potential things

1159
00:52:57,600 --> 00:52:59,799
Speaker 2: that could get in the way Bloomberg's Caroline had.

1160
00:52:59,760 --> 00:53:01,080
Speaker 3: We thank you so very much.

1161
00:53:00,880 --> 00:53:02,920
Speaker 2: For your time and your incredible interview is at a

1162
00:53:02,960 --> 00:53:06,560
Speaker 2: pretty pivotal moment watching that RM IPO Open Interviews just

1163
00:53:06,680 --> 00:53:09,520
Speaker 2: around that. Now, that does it for this edition of

1164
00:53:09,520 --> 00:53:12,799
Speaker 2: Bloomberg Technology, the IPO edition coming up next to you.

1165
00:53:12,880 --> 00:53:15,279
Speaker 2: Don't forget to check out that podcast. You can find

1166
00:53:15,280 --> 00:53:17,440
Speaker 2: it on the terminal. You could find it online as

1167
00:53:17,480 --> 00:53:21,960
Speaker 2: well as on Apple, Spotify, and iHeart this is Bloomberg