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Arm to Be Valued at $52.3 Billion as IPO Are Set

September 5, 2023
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Arm Holdings Ltd. has disclosed the terms of its forthcoming initial public offering (IPO) in the United States, as the UK-based semiconductor designer prepares to offer approximately $4.9 billion worth of shares to the public.

The anticipated pricing of the IPO would place Arm's valuation in the range of $48.23 billion to $52.33 billion. This valuation range is slightly below the previously reported estimate by The Wall Street Journal, which had projected a valuation between $50 billion and $55 billion.

In accordance with the filing submitted to the U.S. Securities and Exchange Commission, Arm Holdings plans to offer 95.5 million American depositary shares (ADS) in the IPO, with an expected price range of $47 to $51 per ADS.

All of the ADSs to be offered are currently held by the Japan-based holding company SoftBank Group Corp., which had entered into an agreement to acquire Arm in 2016 in a transaction valued at over $32 billion.

Upon completion of the IPO, Arm Holdings is set to be listed on the Nasdaq stock exchange under the ticker symbol "ARM." Each ADS will represent one ordinary share. With a total of 1.03 billion ordinary shares expected to be outstanding post-IPO, the company's valuation would stand at approximately $50.3 billion at the midpoint of the proposed IPO price range. Following the IPO, SoftBank will retain ownership of approximately 929.7 million ordinary shares.

A consortium of 27 underwriters, including Barclays, Goldman Sachs, J.P. Morgan, and Mizuho, will lead the offering.

Arm Holdings is embarking on its public offering during a period of notable investor interest in IPOs. The Renaissance IPO ETF, which tracks IPO performance, has recorded a 6.6% increase over the past three months, while the S&P 500 has gained 5.7% during the same period.

Eric Ng
Eric Ng
John Liu
Editorial Board
Bryan Curtis
Adan Harris
Managing Editor
Cathy Hills
Associate Editor

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