- By Priyanka Payal
- Sun, 03 Sep 2023 05:26 PM (IST)
- Source:REUTERS
Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp, is considering asking investors to pay $47 to $51 for each of its shares when it starts marketing its initial public offering (IPO) next week, according to a Reuters report citing people familiar with the matter.
The price range, which has not been earlier reported, would convert into a valuation for Arm of almost between $50 billion and $54 billion, and an offering of $5 billion to $5.4 billion. It would make Arm the most valuable company to list in New York since electric car maker Rivian Automotive debuted in 2021.
There is also a possibility for SoftBank to raise this range before the IPO prices, depending on the interest shown by investors who requested anonymity because the matter is confidential.
There is still no official confirmation about this price range by either Arm or SoftBank.
The valuation Arm is currently seeking represents a climb-down from the $64 billion valuation at which SoftBank bought a 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
This reflects a recent decline in demand for some of Arm's offerings. For the year ended March 31, Arm's sales dropped to $2.68 billion, hurt mainly by a drop in global smartphone shipments.
According to a Reuters report, Arm has already signed up many of its major clients as investors in its IPO. These include Apple Inc, Nvidia Corp, Alphabet Inc, Advanced Micro Devices Inc, Intel Corp, Samsung Electronics Co Ltd, Cadence Design Systems Inc and Synopsys Inc.
