Arm targets valuation of up to $52bn in IPO

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Arm plans to price its initial public offering at between $47 and $51 per share, according to an updated filing on Tuesday, raising up to $4.9bn for its current owner SoftBank and valuing the UK-based chip designer at up to $52bn.

Cornerstone investors including Apple, Google, Nvidia, Intel and TSMC have indicated they plan to purchase up to $735mn worth of Arm shares at the IPO price, the company said.

SoftBank paid $32bn to acquire Arm in 2016 but its latest target is below the $64bn valuation implied less than a month ago in a transaction with its own Vision Fund, the $100bn Saudi-backed investment vehicle that the Japanese conglomerate manages.

SoftBank will still own 90.6 per cent of the company following the IPO, which is expected to conclude next week. The companies will begin their roadshow pitching the float, expected to be one of this year’s biggest, to investors in New York on Tuesday.

This is a developing story