Arm Holdings Plc, the chip design company owned by SoftBank Group, has set its initial public offering (IPO) at $51 per share to raise $4.87 billion, a statement confirmed on Wednesday. It is the largest listing this year and may give a major boost to the long-term sluggish stock market.
Based on the IPO price, Arm is valued at approximately US$54.5 billion. The underwriters have the option to purchase up to 7 million additional shares.
While Arm had previously aimed to raise $8 billion to $10 billion, that goal was lowered, at least in part, due to SoftBank's decision to acquire about 25% of the Vision Fund's stake and then take a larger stake in the company. Arm said in a filing with the U.S. Securities and Exchange Commission that SoftBank will still control about 90% of the company after the IPO.
Arm set aside more than $700 million in shares in the IPO for purchase by some of its largest customers, including Intel, Apple, Nvidia, Samsung Electronics and TSMC.
The offering was led by Barclays, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group Inc. Raine Securities LLC also served as financial advisor in the IPO.
The stock is expected to begin trading on the Nasdaq Global Select Market on Thursday under the symbol ARM.