Owner Softbank wants to go 43 euros to 47 euros ($47 to $51) per share at Arm’s IPO. It should earn Arm the accolade of being the most valuable debut listing since Rivian Automotive in 2021.
The price of $47 to $51 was not previously communicated, but will be the target according to Reuters sources. This would result in a valuation of Arm of $50 billion to $54 billion and mean between $5 billion and $5.4 billion in revenue.
Despite the impressive numbers, Arm’s total value appears to be lower than the $64 billion previously desired by Softbank. One possible cause is the reduced demand for Arm processors. The demand is said to have decreased mainly because of less demand for smartphone processors.
Investment from other manufacturers
According to Reuters, Softbank may still adjust the share price and expected earnings upward in the coming week. The stock is said to be in high demand by investors, especially other chip makers. This is because Arm’s technology is often indispensable for developing their own chips.
Major chip makers such as Intel, AMD, Nvidia, Samsung, Cadence Design Systems and Synopsys have already taken stakes. Apple, for its own M-series of processors, among others, and Alphabet have also already invested in Arm shares.