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Arm hits Nasdaq with US$54.5 billion valuation

Arm hits Nasdaq with US$54.5 billion valuation

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By Peter Clarke



Processor IP licensor Arm Holdings plc has priced its initial public offering 95,500,000 American depositary shares at $51. This will raise approximately $5 billion for selling parent SoftBank Group Corp.

SoftBank is only selling about 10 percent of its holding.

The listing is at the top end of a previously discussed range of US$47 to US$51 and values Arm at US$54.5 billion. This is below the US$64 billion valuation put on the company when SoftBank bought 25 percent of the company from its own Vision Fund.

Although SoftBank will only raise about US$5 billion the stock market debut will allow the holding company to borrow money against the value of the remaining 90 percent stake it holds in Arm.

Arm’s stock is expected to begin trading on the Nasdaq Global Select Market on September 14, 2023 under the symbol ARM.

SoftBank has granted the underwriters an option to purchase up to an additional 7 million ADSs to cover over-allotments, if any, for 30 days after the date of the final prospectus. The IPO is expected to close on September 18, 2023.

Related links and articles:

www.arm.com

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