Arm to price IPO at top end of range, valuing chip designer at $54.5 billion
Arm, the chip designer owned by SoftBank Group Corp, is set to price its initial public offering (IPO) at the top end of its indicated range, valuing the company at $54.5 billion, according to a person familiar with the matter.
The company had been considering pricing its IPO above the indicated range of $47-to-$51-per-share, but decided against such a move in order to adhere to its more conservative approach to marketing the offering, the source said.
Arm is scheduled to start trading in New York on Thursday.
The strong investor demand for Arm’s IPO is a sign of the company’s potential, as it is seen as a leader in the development of low-power chips for the cloud computing, automotive, and other markets.
However, Arm’s revenue has stagnated in recent years due to weak demand for mobile phones, its main market. The company is hoping to grow its business in other areas, such as the cloud computing market, where it has only a 10% share.
Arm’s IPO is also being closely watched by investors as a test of investor appetite for technology IPOs. The market for tech IPOs has been relatively quiet in recent months, as investors have become more cautious about the sector amid rising interest rates and other headwinds.
However, Arm’s strong demand could help to revive investor interest in tech IPOs.
Here are some key takeaways from the article:
- Arm is set to price its IPO at the top end of its indicated range, valuing the company at $54.5 billion.
- The strong investor demand for Arm’s IPO is a sign of the company’s potential.
- Arm’s revenue has stagnated in recent years due to weak demand for mobile phones.
- Arm is hoping to grow its business in other areas, such as the cloud computing market.
- Arm’s IPO is also being closely watched by investors as a test of investor appetite for technology IPOs.
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