HomeFinancial MarketsArm Looks to Raise $4.87 Billion in IPO

Arm Looks to Raise $4.87 Billion in IPO

Chip designer Arm Holdings Ltd. is aiming to raise $4.87 billion in the company’s long-anticipated initial public offering (IPO). This is nearly half the amount that the company initially expected to raise upon going public.

Owned by SoftBank Group Corp., the computer processor maker is set to offer a total of 95.5 million American depositary shares at its IPO, with prices in the range of $47 to $51 each. This would value the company at around $54.5 billion, Bloomberg News reported.

Previously expecting to raise between $8 billion and $10 billion, Arm lowered its target after SoftBank decided to purchase a 25% stake through its Vision Fund. Following the IPO, SoftBank is still expected to own a 90% stake in the company.

Even at the lower end of its target range, Arm will emerge as the world’s largest IPO this year, surpassing the $4.37 billion raised by Johnson & Johnson consumer health spinoff Kenvue Inc.

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