SoftBank Group's Arm is aiming for a valuation of more than $52 billion in its initial public offering, making it the year's largest stock market flotation.
According to a regulatory filing on Sept 5, SoftBank is offering 95.5 million American depository shares of the Cambridge, United Kingdom-based company for $47 to $51 per share, with the goal of raising up to $4.87 billion at the top of the range.
Its recent acquisition of the 25% stake in Arm that it did not already own through its Vision Fund unit valued the company at $64 billion. According to a filing, the Japanese conglomerate will own 90.6 percent of Arm's ordinary shares after the offering closes. SoftBank will mark the return of Arm to the public markets by enlisting several marquee technology names as investors in the company whose designs power more than 99 percent of the world's smartphones.
The listing is expected to boost the global IPO market and encourage other startups to move forward with their offerings, as Arm's success signals a return of investor interest in high-growth technology companies. SoftBank's proposed price range for the IPO was first reported on September 2. According to sources, if investor demand is strong, the price range could be raised before the IPO.