barely missing a week for ARM to go public, and the company is finalizing the details of its debut on the parquets. Among other things, ARM, owned by SoftBank, has lowered what it will initially ask for each of its titles. Thus, according to Reuters, its price when its listing begins will be between 47 and 51 dollars.
In this way, the company expects to get between 5,000 and 5,400 million dollars with the operation, which will leave its valuation between 50,000 and 54,000 million dollars. A notable reduction, since only a few days ago it thought to place its valuation around 64,000 million dollars. Still, whatever valuation it currently is will make it the highest-valued company to list on the New York Stock Exchange since Rivian’s debut in 2021.
However, SoftBank could still decide to increase the price range that it will ask for each title. It could do so if demand from future investors is expected to be strong, according to several sources. In any case, the reduction could be due to the fact that there has recently been a drop in demand for some of its products. After its fiscal year ended on March 31, its sales had dropped to 2.68 billion dollars, mainly due to the decline in sales of smartphones worldwide.
Despite everything, ARM already has committed to the sale of shares to several of its main clients, who will also become your investors. Among them are Apple, Nvidia, Alphabet, AMD, Intel, Samsung Electronics or Synopsys. Part of this interest, it seems, would be motivated by the desire of all of them to increase their relations with ARM, while ensuring that the weight of their rivals in their transactions with the company does not grow.
For virtually all of them, ARM’s chip designs are an indispensable resource. They are designs used by more than 250 technology companies to create and manufacture no less than 30 billion chips each year. These are built into virtually every smartphone in the world. The same is true of sensors and computers, from those intended for the consumer market, to those designed for companies, and even for supercomputing tasks. Hence the great interest of its clients in becoming shareholders.