According to Dolphin Research, it has been learned from informed sources that Arm, the chip design department of SoftBank, is expected to seek an IPO with a stock price of $47-51 per share. According to the proposed range, Arm's valuation is estimated to be between $50-54 billion, with an IPO size of $5-5.4 billion. SoftBank may still decide to increase the price range before the IPO, depending on demand.
Arm declined to comment on this matter, and SoftBank did not immediately respond to a request for comment.
The valuation that Arm is currently seeking is lower than the $64 billion valuation when SoftBank acquired a 25% stake in the company from its $100 billion Vision Fund last month.
This reflects a recent decline in demand for some of Arm's products in the market. For the fiscal year ending March 31, Arm's revenue was $2.68 billion, lower than the $2.7 billion in the 2022 fiscal year, mainly due to the decline in global smartphone shipments.
In addition, according to earlier reports, SoftBank has listed some of Arm's largest customers as strategic investors in the chip company's IPO, including Apple, NVIDIA, Intel, Samsung Electronics, AMD, Cadence Design Systems, Google, and Synopsys.
Arm formally submitted its IPO application last month and plans to list on the Nasdaq Global Select Market under the stock symbol &#34;ARM&#34;. Barclays, Goldman Sachs, JPMorgan Chase, and Mizuho are the lead underwriters for this offering. The roadshow for this IPO is expected to take place after the Labor Day holiday in the United States on Monday.

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According to informed sources, Arm, the chip design division of SoftBank, is expected to seek a per-share issuance price of $47-51 in its upcoming IPO.

Arm's IPO in the United States is priced at $47-51 per share, with an estimated valuation of approximately $50-54 billion.