4 ms·

From an FT article: > SoftBank discussed with underwriters on Wednesday whether to price Arm shares above the initial range, at $52, but settled on the lower f

From an FT article: > SoftBank discussed with underwriters on Wednesday whether to price Arm shares above the initial range, at $52, but settled on the lower figure in the belief shares would trade up and boost confidence in overall markets after nearly two years of pressure on valuations. > “So many people, including SoftBank and all the underwriters, have so much riding on the overall health of the IPO market,” said one person close to the Arm listing. Makes sense given that SoftBank and its underwriters would like to have many more IPOs, and the fear that a poor showing here could draw out the current "IPO winter" seems reasonable.

lvl102 3y ago
They probably got 3-4x what they would’ve been able to get with UK IPO.
SeanAnderson 3y ago
That's super interesting! 4D chess move to be sure, but also kind of crazy that companies plan strategies around affecting the entire world market based off of their behavior.
- HPMOR 3y ago
  Matt Levine has a great piece on ESG actually being a market reaction to the fact most people own index funds now. Since most people are concerned about the OVERALL market now, ESG serves to optimize an externalized concern for the entire market at specific firms.
  - idontwantthis 3y ago
    What is ESG?
    - tuatoru 3y ago
      "Environmental, Social, and Governance" Monopolist corporate feelgood bs, basically. A moral licence to exploit, analogous to licence to pollute.[2] [3] 1. https://en.wikipedia.org/wiki/Environmental,_social,_and_corporate_governance https://en.wikipedia.org/wiki/Environmental,_social,_and_cor... 2. https://www.theguardian.com/environment/2023/jan/24/carbon-offsets-are-a-licence-to-pollute https://www.theguardian.com/environment/2023/jan/24/carbon-o... 3. https://en.wikipedia.org/wiki/Recycling https://en.wikipedia.org/wiki/Recycling
      - mcv 3y ago
        You make it sound like something bad, but surely these are positive things for companies to take into account?
        orionhasyou 3y ago
        Not financial advice. Do your own research but I think this should cover why people are wary of ESG. I think the idea sounds ok. who wouldnt want to invest in these firms? They care about the environment and society and making the world better, right? Well, the implementation is 100% BS. Tesla was removed from the SP500 ESG index. They get a lower score than oil and tobacco companies. Nike and many other firms are using slave labor and get higher scores. Ford and Stellantis have higher scores. The government allows for plans to select these funds for reasons that violate fiduciary duty. The majority of funds underperform the market. They use your money to reward politically aligned companies. ESG is being used to affect credit scores of these firms. Lower scores, higher cost. If higher carbon emissions, slave labor, and political contributions is what ESG is actually about, these are tainted assets. - https://hbr.org/2022/03/an-inconvenient-truth-about-esg-investing https://hbr.org/2022/03/an-inconvenient-truth-about-esg-inve... - https://reason.org/commentary/esg-investing-is-bad-for-the-economy/ https://reason.org/commentary/esg-investing-is-bad-for-the-e... - https://time.com/6180638/tesla-esg-index-musk/ https://time.com/6180638/tesla-esg-index-musk/ - https://thehill.com/opinion/4059114-a-lawsuit-waiting-to-happen-esg-violates-fiduciary-duty-to-investors/ https://thehill.com/opinion/4059114-a-lawsuit-waiting-to-hap... - https://www.lw.com/admin/upload/SiteAttachments/Alert%203058.pdf https://www.lw.com/admin/upload/SiteAttachments/Alert%203058... - https://x.com/elonmusk/status/1526958110023245829?s=20 https://x.com/elonmusk/status/1526958110023245829?s=20 - https://www.environmental-finance.com/content/analysis/surprise-as-s-and-p-drop-esg-scores-from-credit-ratings.html https://www.environmental-finance.com/content/analysis/surpr... - https://hbr.org/2022/08/esg-investing-isnt-designed-to-save-the-planet https://hbr.org/2022/08/esg-investing-isnt-designed-to-save-... - https://www.leadershipnowproject.org/esg-political-influence https://www.leadershipnowproject.org/esg-political-influence
        mcv 3y ago

lvl102 3y ago

They probably got 3-4x what they would’ve been able to get with UK IPO.

SeanAnderson 3y ago

That's super interesting! 4D chess move to be sure, but also kind of crazy that companies plan strategies around affecting the entire world market based off of their behavior.

HPMOR 3y ago
Matt Levine has a great piece on ESG actually being a market reaction to the fact most people own index funds now. Since most people are concerned about the OVERALL market now, ESG serves to optimize an externalized concern for the entire market at specific firms.
- idontwantthis 3y ago
  What is ESG?
  - tuatoru 3y ago
    "Environmental, Social, and Governance" Monopolist corporate feelgood bs, basically. A moral licence to exploit, analogous to licence to pollute.[2] [3] 1. https://en.wikipedia.org/wiki/Environmental,_social,_and_corporate_governance https://en.wikipedia.org/wiki/Environmental,_social,_and_cor... 2. https://www.theguardian.com/environment/2023/jan/24/carbon-offsets-are-a-licence-to-pollute https://www.theguardian.com/environment/2023/jan/24/carbon-o... 3. https://en.wikipedia.org/wiki/Recycling https://en.wikipedia.org/wiki/Recycling
    - mcv 3y ago
      You make it sound like something bad, but surely these are positive things for companies to take into account?
      - orionhasyou 3y ago
        Not financial advice. Do your own research but I think this should cover why people are wary of ESG. I think the idea sounds ok. who wouldnt want to invest in these firms? They care about the environment and society and making the world better, right? Well, the implementation is 100% BS. Tesla was removed from the SP500 ESG index. They get a lower score than oil and tobacco companies. Nike and many other firms are using slave labor and get higher scores. Ford and Stellantis have higher scores. The government allows for plans to select these funds for reasons that violate fiduciary duty. The majority of funds underperform the market. They use your money to reward politically aligned companies. ESG is being used to affect credit scores of these firms. Lower scores, higher cost. If higher carbon emissions, slave labor, and political contributions is what ESG is actually about, these are tainted assets. - https://hbr.org/2022/03/an-inconvenient-truth-about-esg-investing https://hbr.org/2022/03/an-inconvenient-truth-about-esg-inve... - https://reason.org/commentary/esg-investing-is-bad-for-the-economy/ https://reason.org/commentary/esg-investing-is-bad-for-the-e... - https://time.com/6180638/tesla-esg-index-musk/ https://time.com/6180638/tesla-esg-index-musk/ - https://thehill.com/opinion/4059114-a-lawsuit-waiting-to-happen-esg-violates-fiduciary-duty-to-investors/ https://thehill.com/opinion/4059114-a-lawsuit-waiting-to-hap... - https://www.lw.com/admin/upload/SiteAttachments/Alert%203058.pdf https://www.lw.com/admin/upload/SiteAttachments/Alert%203058... - https://x.com/elonmusk/status/1526958110023245829?s=20 https://x.com/elonmusk/status/1526958110023245829?s=20 - https://www.environmental-finance.com/content/analysis/surprise-as-s-and-p-drop-esg-scores-from-credit-ratings.html https://www.environmental-finance.com/content/analysis/surpr... - https://hbr.org/2022/08/esg-investing-isnt-designed-to-save-the-planet https://hbr.org/2022/08/esg-investing-isnt-designed-to-save-... - https://www.leadershipnowproject.org/esg-political-influence https://www.leadershipnowproject.org/esg-political-influence
        mcv 3y ago