Arm sets IPO price at $51, Valuation reaches $54.5 billion

According to Bloomberg, Arm, the chip design company under SoftBank Group, has set its Initial Public Offering (IPO) price at $51 per share, releasing 95.5 million American Depositary Receipts (ADRs). This would value the company at an estimated $54.5 billion, positioning it as one of the most substantial IPOs in the semiconductor industry.

Last week, Arm submitted documents to the U.S. Securities and Exchange Commission suggesting a price range of $47 to $51 per share for its IPO. The finalized offering price is set at the upper limit of this range, yielding a post-IPO valuation of $54.5 billion. However, Arm only plans to trade 9.4% of its shares on the New York Stock Exchange, allowing SoftBank Group, which holds the controlling interest in Arm, to raise a capital of $48.7 billion through the IPO. Previously, Arm had sought a valuation between $60 billion and $70 billion for its IPO, and SoftBank’s valuation of Arm had even surpassed $64 billion. The present IPO scale is considerably below the company’s initial objectives.

As the intellectual property holder behind the architecture of most mainstream smartphone chips, Arm’s clientele includes technology titans like Apple, NVIDIA, and Qualcomm. Its listing has captured their attention, with several firms expressing interest in becoming anchor investors for Arm’s IPO. Consequently, Arm has reserved over $700 million in shares for some of its largest clients, including Intel, Apple, NVIDIA, Samsung Electronics, and TSMC.

On Tuesday, TSMC announced that its board of directors had approved an investment of up to $100 million in Arm, which was listed on NASDAQ in New York this week.