In a significant market return, UK-based chip designer Arm Holdings has achieved a valuation of $54.5 billion (£43.6 billion) as it re-enters the stock market. The IPO, which is the largest of the year, saw shares priced at $51 each, marking the top end of the range indicated to potential investors.
Arm Holdings is set to commence trading on the New York Nasdaq stock market on Thursday. The IPO resulted in the sale of 95.5 million shares, raising $4.87 billion for its owner, Japan’s SoftBank Group.
Several major Arm customers, including Apple, Google, Nvidia, Alphabet, Advanced Micro Devices, Intel, and Samsung, expressed their intentions to invest in the IPO.
Earlier in March, Arm announced that it would not be listing its shares in the UK, a decision that dealt a blow to the London stock market. In January, reports emerged of discussions between UK Prime Minister Rishi Sunak and SoftBank regarding a possible UK listing.
The company ultimately opted for a sole listing in the US, stating it as the best path forward. Co-founder of Arm, Hermann Hauser, cited the impact of Brexit on the reputation of the London Stock Exchange as a contributing factor.
Arm, a prominent entity in the British technology industry, estimates that its chips underpin products used by approximately 70% of the world’s population, including nearly all smartphones.
SoftBank had taken Arm private seven years ago in a $32 billion deal. Plans to sell Arm to US chip giant Nvidia were abandoned in February of the previous year due to significant regulatory challenges across the UK, US, and European Union.