courtesy: inventa
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SoftBank Group Corp backed Arm Holdings Ltd, the chip designer, is planning on asking the investors to pay $47 to $51 for of its shares when it begins marketing its initial public offering (IPO) next week, as per the people familiar with the matter.
The price range, which has not been reportedly earlier, would translate into the valuation of Arm at around $52 billion, and an offering of $5 billion to $5.4 billion would make the chips designer as one of the most valuable company to list in New York since electric car maker Rivian Automotive debuted in 2021.
If the investor demand grows strong, SoftBank could possibly raise this range, as per the sources, reported by Reuters.
The valuation Arm is currently seeking represents a fall from the $64 billion valuation at which SoftBank had entered and acquired 25% stake in the company.
The recent drop in the valuation of Arm is due to the drop in the demand for some its offerings. For the year ended March 31, Arm’s sales fell to $2.68 billion, which was mainly due to the slump in global smartphone shipments.