NEW YORK (Reuters) – According to sources familiar with the matter, Arm Holdings Ltd is aiming for a valuation ranging between $50 billion and $55 billion for its highly anticipated initial public offering (IPO). The company, which is a chip designer owned by SoftBank Group Corp, is expected to announce the price range for its offering next week. Arm intends to price its shares on September 13, followed by stock trading on the Nasdaq commencing the following day.
Earlier reports from Reuters indicated that SoftBank plans to sell approximately 10% of Arm’s shares in the IPO. It was also noted that SoftBank decided to reduce the number of Arm shares to be sold after acquiring the remaining 25% stake in Arm from its Vision Fund unit in August.
This IPO is highly anticipated in the market, as Arm has become a leading player in the chip industry, with its technology present in nearly every smartphone globally. The IPO is expected to attract significant investor interest, given Arm’s strong track record and its presence in key emerging sectors such as artificial intelligence and autonomous vehicles.
Arm’s IPO is seen as a significant test for the overall market sentiment towards technology companies, particularly in the semiconductor sector. The company’s valuation will likely set a benchmark for other technology firms considering public listings in the near future.
The chip industry has experienced significant growth and demand in recent years, driven by the rapid expansion of technologies such as 5G networks, cloud computing, and the Internet of Things (IoT). As a leading chip designer, Arm is well-positioned to capitalize on these trends and continues to innovate in order to maintain its market leadership.
This IPO also comes at a time when the overall IPO market is thriving, with numerous companies going public to take advantage of the current favorable investment climate. The successful listing of Arm could further boost investor confidence and pave the way for other high-profile IPOs in the pipeline.
Analysts and market observers will closely watch the pricing of Arm’s shares and the subsequent performance in the stock market as indicators of investor appetite for technology companies. The outcome of the IPO will likely have broader implications for the global technology sector and future investment strategies.
Arm’s IPO roadshow with investors is scheduled to begin next week, providing an opportunity for potential investors to learn more about the company’s business prospects and growth strategies. The upcoming weeks will be critical for Arm as it navigates the final stages of the listing process.
Reporting by Echo Wang in New York; Editing by Anirban Sen
Credit: The Star : Tech Feed
