Arm plans to raise $4.87 billion in IPO

Previously, Arm had tendered its Initial Public Offering (IPO) documents to the NASDAQ, aspiring to trade under the ticker symbol “ARM.” On Tuesday, local time, Arm presented its most recent IPO dossier to the U.S. Securities and Exchange Commission. As per this document, Arm’s valuation might soar to a majestic $54.5 billion, with ambitions of amassing funds to the tune of $4.87 billion through the IPO.

Media outlets divulged that, in a document Arm submitted to the U.S. Securities and Exchange Commission on Tuesday, the firm plans to issue 95.5 million American Depository Receipts (ADR) at a price bracket of $47 to $51 per share. By these calculations, upon successful listing, Arm’s valuation could crest at $54.5 billion. However, Arm merely intends to offer a modest 9.4% of its shares for open trading on the New York Stock Exchange, whilst SoftBank Group – holding dominion over Arm – anticipates this maneuver would net them a bounteous $4.87 billion.

It is renowned that Arm holds the intellectual property rights behind the architecture of most smartphone chips in the global market. The firm licenses these technological marvels to Apple and a plethora of other companies. In times past, Arm sought a valuation between $60 billion to $70 billion in its IPO, with SoftBank’s valuation of Arm even surpassing $64 billion. Yet, the current IPO scale is considerably diminished from the company’s original aspirations.

Additionally, Arm’s latest IPO documentation mentioned a prolonged collaboration agreement with Apple. This accord, extending beyond 2040, permits Apple to persistently harness Arm’s technology in the custom chip design processes for their iPhone, iPad, and Mac lineups. In reflection, Arm pronounced this endeavor as an affirmation of their “long-standing partnership with Apple and Apple’s continued access to Arm’s architecture.”