Key Insights
- British chipmaker Arm will offer its shares at an IPO in New York at $51 per share.
- At that price, Arm’s IPO valuation of $54.5 billion makes it the biggest tech IPO.
British chipmaker Arm, owned by the Japanese holding SoftBank Group, will offer its shares at an IPO in New York at $51 per share. The offering volume is 95.5 million American Depositary Shares (ADS). A statement about this was published on the company’s website.
Initially, the company intended to conduct an IPO with a share price in the range of $47-51 per share. However, demand from investors significantly exceeded the volume of supply: the order book was oversubscribed 10 times, Bloomberg wrote.
ARM’s IPO Valuation is the largest in two years
At $51 per share, Arm’s valuation would be $54.5 billion, making it the largest tech IPO in two years. Electric van maker Rivian went public in 2021, selling 153 million shares and attracting $11.9 billion in investment. The company’s valuation during the IPO was $76.4 billion, and on the first day of trading its capitalization exceeded $90 billion.
Previously, SoftBank considered the possibility of selling Arm to Nvidia, one of the world’s largest manufacturers of graphics processors, for $40 billion, but last year the parties abandoned the deal amid opposition from antitrust authorities, writes Reuters.
As a result of the IPO, SoftBank, which offered investors just over 9% of Arm shares, will receive about $4.9 billion. After the ARM IPO, the Japanese group will still control about 90% of the company.
Major tech customers for Arm chips, including Apple, Google, Nvidia, Samsung, Intel and TSMC, previously said they were willing to buy $735 million worth of Arm shares at the IPO price, the Financial Times writes.
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Arm shares will begin trading Thursday on the Nasdaq under the symbol ARM.