Arm Announces Pricing of $51 per share Initial Public Offering on Nasdaq.

Cambridge, UK, September 13, 2023 – Arm Holdings plc (“Arm”) today announced the pricing of its initial public offering (the “IPO”) of 95,500,000 American depositary shares (“ADSs”), each representing one of its ordinary shares, at a price to the public of $51.00 per ADS. The ADSs are expected to begin trading on the Nasdaq Global Select Market (“Nasdaq”) on September 14, 2023 under the symbol “ARM.”

The selling shareholder, a wholly-owned subsidiary of SoftBank Group Corp., in the IPO has granted the underwriters an option to purchase up to an additional 7,000,000 ADSs to cover over-allotments, if any, for 30 days after the date of the final prospectus. The IPO is expected to close on September 18, 2023, subject to customary closing conditions.

Raine Securities LLC is acting as financial advisor in connection with the IPO. Barclays, Goldman Sachs & Co. LLC, J.P. Morgan, and Mizuho are acting as joint book-running managers for the IPO. Barclays is acting as Billing and Delivery Agent, Goldman Sachs & Co. LLC is acting as IPO Allocation Coordinator, J.P. Morgan is acting as Stabilization Agent, and Mizuho is acting as Roadshow Launch Coordinator & Salesforce Presentation Host.

Arm was valued at about $60 billion at the start. The business, which trades under the ticker name “ARM,” sold around 95.5 million shares. SoftBank, which took the firm private in 2016, owns almost 90% of the outstanding shares.

Arm priced its shares at the top half of its forecast range on Wednesday. On Thursday, the stock opened at $56.10 and closed at $63.59.

It’s a sizable sum for the British chipmaker. Based on the most recent fiscal year result, Arm’s price-to-earnings multiple would be more than 110 at a $60 billion valuation. That compares to Nvidia’s valuation of 108 times earnings, but without Nvidia’s 170% growth expectation for the current quarter.

In an interview with CNBC, Arm Chief Financial Officer Jason Child stated that the firm is focusing on royalty growth and offering customers with devices that cost more and do more.

Source: ARM / CNBC

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