Arm Holdings Ltd, the chip designer owned by SoftBank Group Corp, is gearing up for its eagerly awaited initial public offering (IPO), with expectations of a price range between $47 and $51 per share. This would value Arm at a staggering $50 billion to $54 billion, making it the most valuable company to list in New York since Rivian Automotive’s successful IPO earlier this year.
However, the price range may be revised upwards in response to strong investor demand. It is important to note that Arm’s current valuation falls short of the $64 billion that SoftBank had paid to acquire its stake in the company just last month.
Arm has been facing challenges lately, with declining sales stemming from a global slump in smartphone shipments, which has dampened demand for its chip products. Nevertheless, major industry players such as Apple, Nvidia, Alphabet, and Intel have already signed up as investors in the upcoming IPO. These companies not only aim to strengthen their ties with Arm but also prevent their competitors from gaining any advantage.
Arm plays a critical role in the technology industry, as its semiconductor designs power a staggering 99% of the world’s smartphones, along with an array of other devices. Its importance in the market is unquestionable.
Neither Arm nor SoftBank has made any official comments regarding the IPO plans. The level of anticipation surrounding this news is immense, and stakeholders are anxiously awaiting further updates from these industry giants.
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