2023-09-05 15:11:01
Chipdesigner Arm
The U.S. IPO of the British company is expected to bring in around $5 billion for its owner, Softbank.
(Photo: Reuters)
New York The US IPO of the chip designer Arm, whose technology is found in practically all smartphones, should bring the Japanese owner Softbank around five billion dollars. An updated listing prospectus on Tuesday set the range for ARM stock at $47 to $51. Softbank wants to place 95.5 million shares in New York.
The issue volume thus amounts to up to 4.87 billion dollars. Arm is targeting a $52 billion company valuation when it goes public. It is probably the world’s largest IPO of the year.
Softbank wants to keep around 90 percent of Arm. Apple and Samsung, among others, are developing the processors for their smartphones based on the chip architectures designed by Arm.
The semiconductor company Qualcomm, whose chips power many Android phones, also uses it. The companies pay royalties to Arm for using the chip architectures.
The arm designs prevailed in smartphones and tablet computers against chip systems from Intel – partly because they use less power. Now chips based on Arm architectures are also used in data centers, and Apple uses them in its Mac computers.
Sale of Arm to Nvidia failed
Softbank bought British company Arm in 2016 for $32 billion and delisted it. A sale to the chip group Nvidia failed last year due to concerns from competition watchdogs and arm customers. After that, the IPO was decided, the proceeds of which should go to Softbank.
The price range puts Arm at a good $50 billion valuation. According to information from the financial service Bloomberg, Softbank originally aimed for an overall valuation of 60 to 70 billion dollars. A proceeds of eight to ten billion dollars had previously been targeted for the IPO.
More: Although tech giants are getting involved: Chip developer Arm’s stock market plans are being dampened
#Chip #designer #targets #billion #valuation #IPO