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.