Is SoftBank’s Arm the biggest IPO of the year?
Share sale to value Arm at as much as $54.5 billion
SoftBank will retain about 90% of the company’s shares after IPO
Tweet on Softbank’s IPO
@SoftBank Arm is set to become the biggest IPO of the year?
Share sale to value Arm at as much as $54.5 billion at top end, as per Bloomberg #SoftBank #arm #chips #ai pic.twitter.com/0oYZtYaiRM
— The_Journalbiz (@the_journalbiz) September 5, 2023
Bloomberg chart on Softbank IPO
SoftBank Group Corp.’s Arm Holdings Ltd. is planning to raise as much as $4.87 billion in a significantly smaller initial public offering than the phone-chip designer had previously targeted.
Arm will offer 95.5 million American depositary shares for $47 to $51 each, the company said in a filing Tuesday with the US Securities and Exchange Commission.
The deal will value Arm at as much as $54.5 billion at the top end of the range, according to Bloomberg calculations.
- Underwriters have the option of buying as many as 7 million additional shares.
- After the IPO, SoftBank will still control about 90% of Arm’s shares, it said in the filing.
Even at the bottom of the share-sale range, the IPO would still be the world’s biggest this year, surpassing the $4.37 billion listing by Johnson & Johnson consumer health spinoff Kenvue Inc.
Arm’s listing could also be a catalyst for IPOs from dozens of tech startups and other companies whose plans to go public in the US have been stuck during the deepest, longest-lasting trough since the financial crisis in 2009.
The company is considering pricing its shares on Sept. 13 and the stock will start trading the next day.
