Arm to be valued at up to $52.3 billion as IPO terms are set

By Tomi Kilgore

U.K.-based chip designer is offering 95.5 million ADS in the IPO, which could be valued at up to $4.9 billion

Arm Holdings Ltd. has set terms for its initial public offering in the U.S., as the U.K.-based semiconductor designer looks to sell up to $4.9 billion worth of shares to the public.

The expected pricing of the IPO would value the company between $48.23 billion and $52.33 billion, which is slightly below the expected range as recently reported by The Wall Street Journal of $50 billion to $55 billion.

The company said in a filing with the U.S. Securities and Exchange Commission that 95.5 million American depositary shares, or ADS, will be offered in the IPO, which is expected to price between $47 and $51 per ADS.

Also read:Arm IPO: 5 things to know about the chip designer central to the AI transition.

All of the ADSs to be sold are currently held by Japan-based holding company SoftBank Group Corp. , which agreed to buy Arm in 2016 in a deal valued at more than $32 billion.

The stock is expected to list on the Nasdaq under the ticker symbol "ARM."

Each ADS will represent one ordinary share. With 1.03 billion ordinary shares to be outstanding after the IPO, the company would be valued at about $50.3 billion at the midpoint of the expected IPO pricing range.

After the IPO, SoftBank will own about 929.7 million ordinary shares.

Barclays, Goldman Sachs, J.P. Morgan and Mizuho are the lead a team of 27 underwriters.

The company is looking to go public at a time of relatively strong investor interest in IPOs, as the Renaissance IPO ETF IPO has gained 6.6% over the past three months, while the S&P 500 has gained 5.7%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-05-23 0853ET

Copyright (c) 2023 Dow Jones & Company, Inc.