Softbank Group’s Arm Holdings has achieved a substantial valuation of $54.5 billion as it re-enters the stock market with a highly anticipated initial public offering (IPO).
During the valuation’s assessment, shares were priced at $51 each, at the upper end of the expected range. The Arm IPO is the largest of the year, with 95.5 million shares sold and $4.87 billion raised for its Japanese owner, SoftBank Group.
Arm holds an impressive roster of customers that include legacy tech giants such as Apple, Google, Alphabet (Google’s parent company), Nvidia, AMD, Intel, and South Korea conglomerate Samsung. All these company have shown expressive interest in investing in the IPO.
Initially, Arm assessed the possibility of a dual UK and US listing, but eventually decided to focus on a solo listing on the New York Nasdaq stock market. One of the reasons pushing the company to refrain from the UK listing is the impact of Brexit on the London Stock Exchange’s, with ARM’s co-founder, Hermann Hauser indicating that Brexit played a role in this decision.
Arm’s chips power estimates 70% of the world’s devices, including the majority of global smartphones. Almost seven years ago, Softbank took Arm private in $32 billion deal. An attempt to sell Arm to US chip giant Nvidia was abandoned due to significant regulatory challenges in the UK, US, and EU.
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