Arms’ IPO price at $52 per share values ​​chip designer at $55.5 billion

Arm US headquarters in San Jose, California on Wednesday, September 6, 2023.

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Arm, a chip design firm that supplies core technology to firms including Apple and NvidiaIt priced its IPO at $52, the source said.

Arm's fully diluted market capitalization, which includes outstanding restricted stock units, is approximately $55.5 billion at the $52 offering price.

British company Arm is listing at least 95.5 million American depositary shares on Nasdaq, and SoftBank, its current owner, will control about 90% of the company's outstanding shares.

The bid price exceeds Arm's estimated price range of $47 to $51. The company will begin trading on Thursday under the symbol “ARM”.

Arm said in its prospectus that revenue in the fiscal year that ended in March fell less than 1% to $2.68 billion from a year earlier. Arm reported net income of $524 million, down 22% from 2022.

Arm is riding a wave of excitement around artificial intelligence to attract investor capital. It could open up the market for tech IPOs after a nearly two-year hiatus. It will be the biggest tech IPO of the year.

Many of Arm's most important customers, including Apple, Google, Nvidia, Samsung, AMD, Intel, Cadence, Synopsis, Samsung and Taiwan Semiconductor Manufacturing Company, will acquire shares in the offering. Its technology is used in 99% of mobile processors worldwide.

The Arm architecture describes how a central processor works at its most basic level, such as how to do arithmetic or how to access computer memory. It was originally founded in 1990 to build chips for devices with batteries and took off when it began to be widely used in smartphone chips. Arm's instruction set uses less power than the x86 architecture used in PC and server chips by Intel and AMD.