Arm Holdings plans to go public at a price of up to $52 billion when the British chip design company lists on Nasdaq, regulatory documents filed on Tuesday said.
That’s down from the previously reported valuation of $60 billion to $70 billion that SoftBank-owned Arm appeared to be aiming for, but would still make Arm the largest tech IPO since electric-vehicle maker Rivian went public in late 2021 . It’s also below its $64 billion valuation when SoftBank recently acquired the rest of the company it didn’t already own directly from its Vision Fund.
A successful ARM debut could breathe new life into a sluggish IPO market that has stalled many venture-backed startups’ plans to go public over the past two years. Last month, grocery delivery startup Instacart and marketing analytics firm Klaviyo also filed their IPO plans — another signal that the IPO drought may finally be easing.
Arm said it plans to raise $4.87 billion from the offering. Arm customers including Apple, Nvidia, Alphabet and AMD have agreed to invest in the IPO, Reuters reported, citing sources familiar with the matter.
Arm’s performance will be watched particularly closely given that many of 2021’s IPOs have not had much success as public companies — nearly half of the 171 companies that went public in 2021 with valuations in excess of $1 billion and still do according to a recent analysis by the Crunchbase Billion-Dollar Exits Board, the value currently traded is less than 500 million US dollars.
The few companies that have ventured into the public markets this year also have very mixed track records.
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