Chip designer Arm Holdings secured a $54.5 billion (roughly Rs. 4,52,121 crore) valuation in its US initial public offering (IPO) on Wednesday, seven years after its owner SoftBank Group took the company private for $32 billion (nearly Rs. 2,66,170 crore). The IPO represents a climb-down from the $64 billion (roughly Rs. 5,30,899 crore) valuation at which SoftBank last month acquired the 25 percent stake it did not already own in the company from the $100 billion (roughly Rs. 8,29,530 crore) Vision Fund it manages.
Yet even with this lower valuation, SoftBank fares better than its $40 billion (roughly Rs. 3,31,800 crore) deal to sell Arm to Nvidia, which it abandoned last year amid opposition from antitrust regulators. Arm priced its IPO at $51 (roughly Rs. 4,230) per share, at the top of its indicated range, raising $4.87 billion (roughly Rs. 40,398 crore) for SoftBank based on 95.5 million shares sold, the company said on Wednesday. Reuters first reported on Arm’s decision on the pricing.
Arm’s shares are scheduled to start trading in New York on Thursday.
Arm has already signed up many of its major clients as cornerstone investors in its IPO, including Apple, Nvidia, Alphabet, Advanced Micro Devices, Intel, and Samsung Electronics.
Reuters was first to report on Tuesday that Arm received enough backing from investors to secure at least the top end of the price range between $47 (roughly Rs. 3,898) and $51 (roughly Rs. 4,230) per share in its initial public offering…
