Arm seeks investors for mega-float in New York
Arm seeks investors for mega-float in New York
- Tech giant plans to ask investors to pay between $47 and $51 per share
- Some big names that have already signed on as IPO investors in Arm include Apple
- It was revealed that the company was targeting a valuation range of $50-55 billion at its IPO
Cambridge chip designer Arm will begin a roadshow for investors this week before becoming the most valuable float in New York in two years.
The tech giant plans to ask investors to pay between $47 and $51 per share when it goes public with its IPO and will hold meetings with potential investors this week, Reuters reported.
Some big names that have already signed on as IPO investors in Arm include Apple, Nvidia, Samsung and Google owner Alphabet.
It was revealed that the company was targeting a valuation range of $50-55 billion at its IPO, though this is lower than the $64 billion owner SoftBank quoted in a recent transaction.
This would make Arm the most valuable company listed on the New York Stock Exchange since the $70 billion debut of electric car maker Rivian Automotive in 2021.
Target: The tech giant plans to ask investors to pay $47 (£37) to $51 per share when it goes public with its IPO
SoftBank took Arm private in 2016 for £24 billion and ripped it off the London Stock Exchange. SoftBank had hoped to sell Arm to US chip company Nvidia, but a £52bn ($66bn) deal in 2022 collapsed due to regulatory obstacles.
British ministers then lobbied SoftBank for a dual listing in London and New York, but the city was left empty-handed.
Arm, whose products are found in about 90 percent of smartphones, is seeing an increasing demand for AI chips. The company is aiming for a record valuation for a British company when it goes public this month.
New York has become popular with tech entrepreneurs. Oxford-based carmaker Arrival was valued at £10.6bn on the Nasdaq in 2021.
The world’s largest building materials company CRH also warned it would move its main stock exchange listing from London to the US, while gambling giant Flutter is planning a fall listing in New York.
British life sciences company Abcam, already listed in New York, was acquired last week by US medical giant Danaher in a £4.5 billion deal.
Daniel Ives, senior equity analyst at Wedbush Securities, said: “There are some phenomenal technology and life sciences companies in Britain and they are all takeover targets for larger US companies.
“This could be the tip of the iceberg if more British technology and life sciences companies are swallowed up.”
The largest-ever London stock price was Glencore’s valuation of £38 billion in 2011.