• By Vaamanaa Sethi
  • Thu, 14 Sep 2023 01:40 PM (IST)
  • Source:JND
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Arm Holdings Plc set the price for its initial public offering (IPO) at the highest point within its range, aiming to raise $4.87 billion. This marks the largest listing of the year and has the potential to significantly boost struggling equity markets.

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The company has set the price band for the issue between $47- $51 per share and the shares are likely to start trading later tonight on the Nasdaq Global Select Market under the symbol Arm.

Arm sold 95.5 million American Depositary Shares for $51 apiece. At the higher end, the chip designer is valued at about $54.5 billion, as per Bloomberg. Underwriters also have the option to buy as many as 7 million additional shares.

The company had previously aimed to raise $8 billion to $10 billion, however, the target was lowered because SoftBank decided to buy roughly 25% stake held by its Vision Fund and then hold onto a larger portion of the shares in the company.

SoftBank will be controlling over 90% of the company’s shares after the IPO, Arm said in its exchange filing. 

Arm was also setting aside more than $700 million of the stock in the IPO to be bought by some of its biggest customers, including Intel Corp., Apple Inc., Nvidia Corp, Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co.

The issue is being led by Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group Inc. Meanwhile, Raine Securities LLC is also acting as a financial adviser.

Arm Holdings IPO is said to be the world’s biggest issue this year, surpassing the $4.37 billion listing by Johnson & Johnson consumer health spinoff Kenvue Inc. 

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SoftBank had acquired Arm seven years ago for $32 billion and is helping it grow and change its business model. A successful debut by Arm would provide a windfall for SoftBank founder Masayoshi Son, whose Vision Fund lost a record $30 billion last year.

Arm’s listing is the largest in the US since electric-vehicle maker Rivian Automotive Inc.’s $13.7 billion offering in October 2021.

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