With a target of raising $4.9 Billion, the ARM IPO is placed to be among the most significant US IPOs. Today, in this article, we have delivered all the essential information related to ARM IPO News, including Dates, Share Price, Valuation, and more. So, stay tuned and keep reading.
Before we proceed with ARM’s IPO details, let’s take a moment to understand the company’s significance in the tech industry. Founded in 1990, ARM Holdings has played a pivotal role in shaping the semiconductor landscape. The company specializes in designing microprocessors, graphics processing units (GPUs), and system-on-chip (SoC) technologies that power various electronic devices, from smartphones to supercomputers.
ARM’s innovative RISC (Reduced Instruction Set Computer) architecture has become a standard in the semiconductor industry, with its low power consumption and high performance making it a favorite among manufacturers. Over the years, ARM has accumulated an impressive portfolio of clients, including industry giants like Apple, Samsung, and Qualcomm.
ARM IPO Overview
Now, let’s quickly have an overview of ARM IPO from the table below:
|Number of employees||7,170|
|Last Year Revenue||$3.7 B|
|IPO Launch Date||14 September 2023|
As of now, you have a brief information about ARM IPO. Now, without any delay, let’s proceed with further details.
ARM IPO Date
According to a press statement from Arm, shares will start trading on the Nasdaq on 14 September 2023. Trading for Arm Holdings will be done under the ARM symbol. There are a total of 95500000 shares offered. ARM’s revenue last year was $3.7 Billion, and its potential valuation is between $30 and 70 Billion. There are approximately 7,170 employees of Arm currently.
The company’s current value is estimated to be up to $52 billion, or more generally, $30 and $70 billion. The cost per share is estimated to be nearly around $47 and $51. While the Japanese company SoftBank, who up until the IPO owned Arm in private, has set a goal of $4.9 billion, this amount could increase to $5.2 billion if the banks underwriting the IPO exercise their option to purchase extra shares from SoftBank.
ARM IPO Valuation
After pricing its IPO at the top of the marketed range on Wednesday, Arm achieved a valuation of $54.5 billion, bringing in $4.87 billion for SoftBank (9984.T), which still owns a 90.6% interest.ARM’s valuation for a chip company is astronomically high compared to every rival in the sector except Nvidia. Based on earnings from the most recent fiscal year, ARM would trade for $54 billion with a price-to-earnings multiple of roughly 104.
According to Bloomberg, SoftBank initially aimed for a valuation of $60 billion, or nearly twice what it actually paid for the company in 2016. However, the company’s valuation would increase to around $24 billion if investors valued Arm at the average market capitalization-to-revenue ratio of the Philadelphia Stock Exchange Semiconductor Index, which is roughly $2.6 billion. As a result, Arm’s IPO might not be as profitable as its anticipated partnership with Nvidia. Investment banks from around the world are presenting estimates ranging from $30 billion to $70 billion.
The shares that have been purchased serve to support the IPO valuation, and the participation of the anchor investor serves to legitimize the IPO decision.
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