Arm, a Chip Design Firm, Aims for a Whopping $52 Billion Valuation in its Mega U.S. Initial Public Offering (IPO)

Chip design firm Arm is preparing for its highly anticipated initial public offering on the New York Stock Exchange, aiming to raise up to $4.87 billion, according to a recent filing.

If successful, the IPO could value Arm at around $52 billion.

Arm, previously listed in London and New York until its acquisition by SoftBank for $32 billion in 2016, has now submitted its updated F-1 filing to the U.S. Securities and Exchange Commission, signaling its intention to once again become a publicly traded company.

As a British company, Arm qualifies as a foreign private issuer in the U.S., with its shares being classified as American depositary shares (ADSs). The company plans to list 95.5 million ADSs at a price range of $47 to $51. By leveraging the full potential of this range, Arm is estimated to raise up to $4.87 billion, with a minimum of $4.49 billion.

With its New York listing, Arm aims to attract significant institutional investments to fuel its research and development efforts, especially in the field of artificial intelligence, where it intends to leverage its latest chip technologies.

If Arm achieves its upper pricing range, its total valuation would reach $52 billion, according to CNBC. However, at the lower end, the valuation would be below $50 billion.

Following the IPO, only 9.4% of Arm’s shares will be available for trading on the New York Stock Exchange, with SoftBank expected to retain approximately 90.6% of the company’s outstanding shares.

The underwriters of the IPO have an option to purchase an additional 7 million American depositary shares worth $735 million, which would decrease SoftBank’s ownership to 89.9%, as stated by the company.