Models of its processors can be found in 99% of smartphones. British electronic chip designer Arm is targeting a valuation close to $52 billion for its debut on the New York Stock Exchange on Thursday, the biggest IPO in nearly two years, according to the price set Wednesday for its shares.
This is the largest IPO in the world since November 2021 and the arrival on Wall Street of the electric vehicle manufacturer Rivian, valued at $77 billion, at the time.
This price corresponds to the high end of the range initially established by Arm, between $47 and $51, reflecting sustained investor appetite. The operation was initiated by the Japanese investment company SoftBank Group, majority shareholder, which will sell, on the market, around 10% of the capital of the technological flagship of Cambridge (England).
Addition for Softbank
The valuation of Arm is significantly higher than the 32 billion paid by the Japanese to take control of Arm in July 2016, but lower than the 60 to 70 billion dollars that SoftBank was targeting a few weeks ago, according to several media .
The success of the introduction of Arm would constitute a form of redemption for the boss and founder of SoftBank, Masayoshi Son, who has mainly been talked about in recent years for his colossal losses recorded on technological investments.
SoftBank notably suffered several billion dollars in capital losses on its stakes in the fallen king of shared offices WeWork as well as in the capital of the Chinese online commerce giant Alibaba.
Full-scale test
The first day of trading, Thursday, will be closely watched, as it is often considered a crucial indicator of the quality of an “IPO” (initial public offering or entry into the stock market).
The baptism of fire of the British technological flagship is also a life-size test for the IPO market, which has been in hibernation for more than 18 months, weighed down by the monetary tightening of central banks and the tightening of credit conditions. We have to go back to 1990 to find figures lower than those of the 2022 vintage.
Already announced on the New York square, behind Arm, the shopping delivery platform Instacart, the online marketing specialist Klaviyo, as well as the manufacturer of the famous Birkenstock sandals, whose application was officially filed on Tuesday.