Arm Plans To Go Public At Up To $55 Billion Valuation—Biggest IPO Since Rivian’s In 2021

British chip designer Arm plans to raise up to $5 billion in its upcoming initial public offering (IPO) in the US, making it the largest IPO in two years. The company will list 95.5 million shares on Nasdaq at an estimated price of $47 to $51 per share, projecting a capital raise between $4.5 billion and $4.9 billion. This would surpass the $4 billion raised by Johnson & Johnson spinoff Kenvue earlier this year. Major tech firms including Apple, Nvidia, Alphabet, and Intel have expressed interest in purchasing about $735 million worth of Arm shares.

Arm's primary owner, SoftBank, will retain a 90% stake in the company, putting the estimated total valuation for the company as high as $54.5 billion. Despite this, the valuation is still below SoftBank’s $64 billion internal valuation for the company last month. Arm, which earns revenue through royalty and licensing fees paid by chip manufacturers, reported $675 million in sales in its most recent quarter. The IPO could provide a much-needed boost to the IPO market, with companies like Instacart and Klaviyo also filing to go public in New York last month.

Key takeaways

British chip designer Arm plans to raise up to $5 billion in its upcoming initial public offering (IPO) in the US, which would make it the largest IPO in two years.
The company will list 95.5 million shares on Nasdaq at an estimated price of $47 to $51 per share, projecting a capital raise between $4.5 billion and $4.9 billion.
Arm's primary owner, SoftBank, will retain a 90% stake in the company, putting the estimated total valuation for the company as high as $54.5 billion.
Large tech firms like Apple, Nvidia, Alphabet, and Intel have expressed interest in buying about $735 million worth of Arm shares.

Arm Plans To Go Public At Up To $55 Billion Valuation—Biggest IPO Since Rivian’s In 2021

Key takeaways

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