SoftBank's Arm Reveals IPO Ambitions With Close To $54 Billion Valuation

In an ambitious move, Arm Holdings Ltd, a leading chip designer under the banner of SoftBank Group Corp SFTBY, is setting the stage for its initial public offering (IPO) next week.

What Happened: The company hinted at a share price bracket of $47 to $51, insiders revealed to Reuters.

Such a pricing strategy could catapult Arm to a valuation ranging from $50 billion to $54 billion and an offering of $5 billion to $5.4 billion. It would also crown Arm as the most prized company to grace the New York stock exchange since Rivian Automotive Inc RIVN in 2021, Reuters reported.

SoftBank is reportedly considering nudging the price range a notch higher if the market shows an insatiable appetite.

Both Arm and SoftBank, however, have opted to keep their cards close to their chest, refraining from making any official statements.

The valuation that Arm is currently eyeing is somewhat toned down from the staggering $64 billion at which SoftBank recently acquired its 25% stake in the firm, Reuters noted. 

Also Read: SoftBank-Backed Arm Eyes Commercial Blockbuster Products Ahead Of IPO, Shelves Flagship Division

The adjustment seems to stem from a waning demand for a few of Arm's products. For the year ending on March 31, Arm's sales dwindled to $2.68 billion, a casualty of the slump in global smartphone shipments.

Nevertheless, a number of major players have already thrown their hats in the ring for the impending IPO, including industry behemoths like Apple Inc AAPL, NVIDIA Corp NVDA, Alphabet Inc GOOGL, Advanced Micro Devices Inc AMD, Intel Corporation INTC, Samsung Electronics Co Ltd, Cadence Design Systems Inc CDNS and Synopsys Inc SNPS.

Their interest is driven by their goals of solidifying their commercial ties with Arm and ensuring they don't lose their competitiveness.

Now Read: Arm Announces Public Filing of Registration Statement for Proposed Initial Public Offering

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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