Chipmaker Arm is seeking a valuation of $50-55 billion in its IPO. But only a few weeks ago, Arm’s owner SoftBank purchased the portion of shares in Arm it did not already own from a related party at a valuation of $64 billion. This is the equivalent of showing up to your own auction wearing glasses and a fake mustache and saying things like, “Wow, this item is incredible! I would pay at least $64 billion.” Somehow it seems not to have fooled investors.

The lowdown

• 💸 Chipmaker Arm is seeking a valuation of $50-55 billion in its IPO, down from the $64 billion valuation given last month.

• ✍️ Billionaire founder of Foxconn Terry Gou resigns from the company’s board to pursue political ambitions.

• 😶 Under pressure Chinese property developer Country Garden wins bond extension concession from creditors.

Flex your finance muscle 💪

Non-farm payroll

The Hollywood strike resulted in a decrease of 17,000 jobs last month and bankruptcy of trucking firm Yellow led to 37,000 job losses. Yet non-farm payroll increased by 187,000 in August. What is it?

It represents the total number of paid US workers, excluding sectors like government, private households, nonprofits and, as the name suggests, farming. It offers a snapshot of the nation's employment, shedding light on the health of the labor market. As a result, it is closely looked at by the Fed.

So why doesn’t it include farm workers? Because it would be too expensive.

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Saudi Arabia is considering selling $50 billion of shares in Aramco

Saudi Arabia is considering selling a $50 billion stake in the world’s most valuable oil company Aramco ($). An enormous slice that would be the largest offering in the history of capital markets.

This would not be the first record set by Aramco. In 2019, it completed the world’s largest IPO at $29.4 billion, listing on the Tadawul (Saudi stock exchange). In March, Aramco announced a record annual profit of $161 billion in 2022, making it the largest ever by an energy firm.

Saudi Arabia has previously considered plans to raise funds via Aramco. Last year, Aramco considered multiple listing options but found market conditions unfavorable. The new Aramco offering is likely to also be hosted on the Saudi exchange, although a secondary listing in London was considered. (Those guys just can’t catch a break.)

The content we're consuming today

• Odd Lots podcast: Hyun Song Shin on the New Financial Stability Risks.

• FT: How not to network — lessons from my summer in the city ($).

• Bloomberg: Tiger Cubs’ Wrong-Way Bets Cut Flow of Fresh Cash to a Trickle ($).

Off-balance sheet items

• The Rugby World Cup starts in four days and this year it is being held in France. Until then, get goosebumps watching the top 10 Rugby World Cup moments ever.

The bottom line