Chip design firm Arm seeks up to $52 billion valuation in blockbuster U.S. IPO

Technology

The Arm website on a laptop arranged in New York, US, on Wednesday, Aug. 23, 2023. 
Gabby Jones | Bloomberg | Getty Images

Chip design firm Arm on Tuesday submitted an updated filing for its upcoming blockbuster initial public offering on the New York Stock Exchange, setting a price range between $47 and $51.

The company submitted its updated F-1 filing with the U.S. Securities and Exchange Commission, setting out its ambitions to once again become a publicly listed company. It was previously dually listed in London and New York, before SoftBank acquired it for $32 billion in 2016.

As a British company, Arm qualifies as a foreign private issuer in the U.S. and its shares will count as American depositary shares, or ADSs. Each ADS will be priced at between $47 and $51, Arm said.

Only 9.4% of Arm’s shares will be freely traded on the New York Stock Exchange, with SoftBank expected to own roughly 90.6% of the company’s outstanding shares following the completion of the IPO.

The underwriters for the listing have an option to purchase up to an additional 7 million American depositary shares, worth $735 million. If they choose to purchase these shares, SoftBank’s ownership of Arm will be reduced to 89.9%, the company said.