SoftBank Backed Arm Raises $4.87 Billion in its IPO Venture, Commences Trading in Public

By: Asia Business Outlook Team | Thursday, 14 September 2023

SoftBank Group Corp's chip designer Arm Holdings priced its US initial public offering (IPO) at the top end of its indicated price range on Sept 13. afternoon, according to people familiar with the matter.

SoftBank raised $4.87 billion in the IPO with 95.5 million shares sold. It implies that Arm is worth $54.5 billion on a fully diluted basis, making it the largest US stock market debut since Rivian Automotive in 2021.

Prior to an official announcement, the sources requested anonymity. SoftBank and Arm both declined to comment.

The Wall Street Journal incorrectly reported earlier that Arm was planning to price its IPO at US$52 per share, which would have exceeded its stated range. According to sources, Arm discussed pricing the offering at US$52 per share with its investment banks before settling at US$51.

Arm's stock is set to begin trading in New York on September 14.

The IPO valuation represents a drop from the US$64 billion valuation at which SoftBank acquired the remaining 25% stake in the company from its US$100 billion Vision Fund last month.