The Strategist

Reuters: Arm to be valued at $50-54B in IPO

09/05/2023 - 03:35

According to Reuters, which cited its own sources, Arm plans to set the opening price of its shares as part of the initial public offering on Nasdaq in the region of $47 to $51. As a result, the business will be valued at $50–54 billion, far less than earlier projections.

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Late in August, British microprocessor maker Arm, which is owned by Softbank of Japan, said that it had applied for a US initial public offering (IPO). According to the petition, Softbank planned to sell around 10% of Arm's shares.

At the same time, the company anticipated a valuation of $60–70 billion, or about in the same ballpark as the price at which Softbank acquired the semiconductor manufacturer in 2016. When Arm was valued at $64 billion at the time, the Japanese business paid $32 billion for a controlling stake in the company.

Nearly all smartphones use the British company's microprocessors, and Arm holds a market share of over 99%. Because of this, all of the main producers of electronics and processors, including Apple, Nvidia, Alphabet, AMD, Intel, and Samsung Electronics, are already signed on as investors.