(UK) – Arm Holdings Ltd, the UK-based chip designer owned by SoftBank Group Corp is aiming for a market valuation exceeding $50 billion in its upcoming initial public offering (IPO), marking its return to the public market for the first time since 2016.
The company, renowned for designing chips utilized in smartphones, gaming consoles, and more, intends to raise nearly $5 billion through its listing on the Nasdaq in the US.
This IPO, considered the year’s largest, serves as a litmus test for market sentiment.
Arm Holdings Valuation targets over $50 billion
Arm Holdings decision to list in the US comes after substantial lobbying from the UK government, including intervention by Prime Minister Rishi Sunak, though the company has committed to retaining its key assets, operations, and headquarters in the UK.
As a major player in the British tech sector, Arm estimates that its chips power around 70% of the global population’s devices, including nearly all smartphones.
The company, currently owned by Japanese investment giant Softbank, was valued at $32 billion when Softbank acquired it in 2016.
Arm was previously listed on both the London and New York stock exchanges for 18 years before going private.
Following the IPO, Softbank owned organization will retain a 90% ownership stake. Notable investors committed to purchasing approximately $735 million worth of Arm’s shares include Apple, Google, and Nvidia.
The offering’s price per share is expected to fall between $47 and $51, resulting in a market capitalization ranging from $50 billion to $54 billion.
The listing’s significance is amplified amid the global semiconductor landscape, with tensions between the US and China intensifying over technology dominance.
China represents 25% of Arm’s sales, but a decline in smartphone shipments has recently impacted its revenue. In the fiscal year ending March 31, the company reported nearly flat overall revenue.