A new Arm initial public offering (IPO) update is available and it has the company expecting a massive valuation when shares go public.
Let’s get into all of the details traders need to know about the Arm IPO below!
Arm IPO Details
- Arm is planning to go public with the sale of 95.5 million American depositary shares (ADS).
- According to its updated filing with the Securities and Exchange Commission (SEC), these shares will be priced between $47 and $51 each.
- That means the chip design company could raise between $4.49 billion and $4.87 billion with the IPO.
- To go along with that, this IPO could value Arm between $50 billion and $52 billion, depending on the price its shares debut at.
- Investors will note that the Arm IPO will only see about 9.4% of the company’s shares trade on the New York Stock Exchange under the ARM stock ticker.
- That’s due to SoftBank (OTCMKTS:SFTBY) holding the other 90.6% after the IPO, unless underwriters exercise their options, which would leave it with 89.9% of the shares.
- Investors will remember that SoftBank purchased Arm for $32 billion back in 2016.
Arm is a semiconductor and software design company founded in 1990 that operates out of Cambridge, England. Nvidia (NASDAQ:NVDA) once tried to acquire Arm in a $40 billion deal but failed to do so after protests from competitors and regulators nixed that agreement.
Investors looking to learn even more about the latest stock market news on Tuesday are going to want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.