Reply To: How to Value SoftBank’s Semiconductor Arm IPO Among the NVidia and AI Frenzy


Arm Holdings announced terms for its IPO on Tuesday.

The Cambridge, UK-based company plans to raise $4.7 billion by offering 95.5 million ADSs (100% secondary) at a price range of $47 to $51. Certain cornerstone investors, including Intel and NVIDIA, intend to purchase $735 million worth of ADSs in the offering (16% of the deal). At the midpoint of the proposed range, Arm Holdings would command a fully diluted market value of $50.8 billion.

At $4.7 billion, Arm is slated to be the largest IPO of 2023, and the largest deal since Rivian (RIVN) in late 2021. The offering would raise nearly $1 billion more than the year’s current leader, J&J spin-off Kenvue (KVUE).

Although the company has not specified an exact date for the IPO, it is widely expected within this month. Bloomberg earlier reported arm management would likely price its shares on September 13, with trading to occur the following day.