Billions of dollars worth of shares are entering the market in what might be the biggest IPO of the year.
UK-based computer chip designer Arm Holdings Ltd has received increasing attention as its highly anticipated IPO (initial public offering) inches closer.
The tech company, which is owned by Japan’s SoftBank Group Corp, is aiming to raise $5 billion (€4.7 billion) in what might be the biggest US stock market debut in two years.
The chip designer, whose chips are used in smartphones, cloud computing and automotive technology, intends to sell 95.5 million shares between $47 and $51 per share, to raise up to $4.87 billion.
Following a successful IPO roadshow and meeting with a number of potential investors, Arm is reportedly considering raising its initial price because so many investors have signed up to buy shares.
According to Bloomberg, the IPO is already oversubscribed by 10 times and orders could be closed on Tuesday, one day before the initial deadline.
Based on the final share price, the company's valuation could reach more than $54 billion -- making it the most valuable company to list in New York since electric carmaker Rivian Automotive debuted in 2021.
The investment opportunity has caught the eye of the biggest tech companies too; among others, the world's largest contract chipmaker TSMC is going to buy into the company, up to $100 million, with Apple, Samsung and Intel also signalling their interest.
Arm’s stock offering is set to get underway on the Nasdaq later this week on 14 September 2023.