Chip design firm Arm sets $47 to $51 share price for Blockbuster US IPO

Arm website on laptop organized on Wednesday, August 23, 2023 in New York, USA.

Gabby Jones | Bloomberg | Good pictures

Chip design company Arm filed an updated filing for its upcoming blockbuster initial public offering on the New York Stock Exchange on Tuesday, setting a price range of between $47 and $51.

Submitted by the company Updated F-1 filing With the US Securities and Exchange Commission, it sets out its ambitions to become a publicly listed company again. It previously listed twice in London and New York before being bought by SoftBank for $32 billion in 2016.

As a British company, Arm qualifies as a foreign private issuer in the United States and its shares are accounted for as American Depositary Shares, or ADSs. Each ATS will be priced between $47 and $51, Arm said.

While only 9.4% of Arm’s shares will be freely traded on the New York Stock Exchange, SoftBank is expected to own 90.6% of the company’s outstanding shares after the IPO.

The underwriters for the listing have an option to purchase an additional 7 million American Depositary Shares valued at $735 million. If they choose to buy these shares, SoftBank’s arm ownership will be reduced to 89.9%, the company said.

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