While Arm had previously aimed to raise US$8 billion to US$10 billion, that target was lowered at least in part because SoftBank decided to buy the 25% stake held by its Vision Fund and then hold onto a larger portion of the shares in the company. After the IPO, SoftBank will still control about 90% of Arm’s shares, it said in the filing.
SoftBank Group Corp.’s Arm Holdings Ltd. is planning to raise as much as US$4.87 billion $6.63 billion) in the chip designer’s long-anticipated initial public offering, marking lowered ambitions for an IPO that was once expected to generate roughly twice that amount.
Arm will offer 95.5 million American depositary shares for US$47 to US$51 each, the company said in a filing Tuesday with the US Securities and Exchange Commission. The deal will value Arm at as much as US$54.5 billion at the top end of the range, according to Bloomberg News calculations. Underwriters have the option of buying as many as 7 million additional shares.
