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Arm valued at £43.6bn ahead of New York IPO

Image credit: Arm

Cambridge-based chip designer Arm has confirmed its valuation of $54.5bn (£43.6bn) ahead of its IPO on the Nasdaq exchange in New York later today.

Shares for the Arm IPO have been priced at $51 (£41) for 95,500,000 American depositary shares and listed under the ticker “ARM”.

Arm designs and licenses advanced semiconductor technology that powers many of the world’s electronic devices. From smartphones to video game consoles to servers, Arm estimates that 70% of the world’s population uses products powered by its chips. It has become a market leader, with customers including Nvidia, Apple, Samsung and Qualcomm.

An extra 7,000,000 in American depositary shares has been made available in Arm’s IPO by sole owner Japanese conglomerate SoftBank to offset over-allotment.

Its public listing on the Nasdaq Global Select Market is planned to finish on 18 September. AMD, Google, Apple and Nvidia are all firms that are expected to invest at the time of Arm’s listing.

Nvidia initially intended to acquire Arm for $40bn (£29.6bn) back in 2022, however, the deal was abandoned as a result of regulatory scrutiny.

The decision to list in New York over London came in spite of numerous attempts by British politicians, including Prime Minister Rishi Sunak, to convince Arm to go public in the UK.

Arm decided to forgo a home market IPO when in March it confirmed it was heading to the US. However, at the time Arm’s chief executive Rene Haas said:

“Arm is proud of its British heritage, and continues to work with the British Government. We will continue to invest and play a significant role in the British tech ecosystem. Arm also intends to consider a subsequent UK listing in due course.”

Read more: Everything you need to know about the blockbuster Arm IPO