Arm Holdings holds the largest IPO of 2023 on NASDAQ
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One of the leading developers of microprocessors, the British company Arm Holdings announced the placement of its shares on the New York NASDAQ exchange as part of an IPO, which became the largest in the world since the beginning of 2023. Investors valued Arm at $54.5 billion, and the company raised $4.9 billion from the sale of its shares.
Late yesterday evening Arm Holdings announced the price of placing its shares on the New York NASDAQ exchange based on the results of applications collected from investors. It amounted to $51, which is the upper limit of the price corridor is $47–51. The company placed 95.5 million of its shares at this price – about 10% of all shares, earning $4.87 billion for them. Investors valued the entire Arm Holdings at $54.5 billion. However, the amount of the placement may increase further, taking into account the additional 7 million shares that investors will be able to buy over the next 30 days.
In any case, Arm Holdings’ IPO has already become the largest initial public offering of 2023. Its current main owner, the Japanese telecommunications corporation Softbank, decided to list the British manufacturer on the stock exchange. became known in August.
Arm Holdings Plc was acquired by the Japanese company Softbank in 2016 for $32 billion. Microprocessors developed by the British company are used in almost all smartphones, and Arm’s share of this market exceeds 99%. “We estimate that approximately 70% of the world’s population uses Arm-based products,” the company said in a statement. The manufacturer also clarifies that microprocessors created on the basis of its technologies occupy 49% of the market, the volume of which last year exceeded $200 billion.
Initially, the Japanese corporation wanted to sell 25% of Arm Holdings on the stock exchange, which would have made it possible to gain even more, about $8-10 billion. However, then it was decided to reduce the volume of shares being sold; after the placement, Softbank would own almost 90% of the company.
According to Bloombergmany of the largest high-tech manufacturers – Intel, Apple, Nvidia, TSMC, Samsung, etc. – showed interest in purchasing Arm Holdings shares.
They reportedly bought a total of $700 million worth of shares in the British company.
The day before, Mark Liu, head of Taiwan’s TSMC, the world’s largest chip manufacturer, stated: “Arm is an important element of our ecosystem, our technologies and the ecosystem of our customers. We want this company to develop successfully, and that’s the main thing.”
Arm Holdings shares will begin public trading on the NASDAQ exchange this evening under the symbol ARM.
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