Arm seeks investors for mega float in New York
- The tech giant plans to ask investors to pay between $47 and $51 (£37) per share
- Among the big names that have already signed up as IPO investors for Arm is Apple
- Apparently, the company is targeting a valuation range of $50 billion to $55 billion when it goes public
Cambridge chip designer Arm is set to launch an investor roadshow this week before becoming the most valuable float in New York in two years.
The tech giant plans to ask investors to pay $47 to $51 per share when it begins marketing its IPO and to hold meetings with potential investors this week, Reuters reported.
Big names already signed up as Arm IPO investors include Apple, Nvidia, Samsung and Google-owner Alphabet.
The company appears to be targeting a valuation range of $50 billion to $55 billion for its IPO, though that’s below the $64 billion that its owner, SoftBank, stated in a recent transaction.
That would make Arm the most valuable New York-listed company since electric carmaker Rivian Automotive made its $70 billion debut in 2021.
Target: The tech giant plans to require investors to pay $47 to $51 ($37 to $51) per share when it begins marketing its IPO
SoftBank privatized Arm for £24bn in 2016, wresting it from the London Stock Exchange. SoftBank had hoped to sell Arm to US chipmaker Nvidia, but a £52 billion ($66 billion) deal in 2022 fell through 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 in about 90 percent of smartphones, is seeing increasing demand for AI chips. The company is targeting a record float rating for a UK company when it goes public as soon as this month.
New York has become popular with tech entrepreneurs. Oxford-based vehicle manufacturer Arrival was valued at £10.6 billion on the Nasdaq in 2021.
The world’s largest building materials company, CRH, also warned it would switch its listing from London to the US, while gaming giant Flutter plans to list in New York in the fall.
British life sciences company Abcam, already listed in New York, was bought by US medical giant Danaher in a £4.5 billion deal last week.
Daniel Ives, senior equities analyst at Wedbush Securities, said: “There are a number of phenomenal technology and life sciences companies in the UK and all are takeover targets for larger US firms.”
“This could be the tip of the iceberg as more and more UK technology and life sciences companies are swallowed up.”
The biggest London IPO of all time was the £38 billion valuation of Glencore in 2011.