ARM prices its IPO a $51 a share to start trading today
The chip design business, which supplies core technology to companies including Apple and NVIDIA, has priced its initial public offering (IPO) at $51 a share.
That would give it a market capitalisation at over $54 billion. Assuming all shares are sold it will raise $4.87bln for Softbank. That’s $10bln lower than ARM's valuation when Softbank bought the 25% it did not already own, but it is $14bln higher than the price it agreed with NVIDIA, before the transaction was aborted.
(Video Transcript)
ARM
ARM, the chip design company that supplies core technology businesses, including Apple and NVIDIA, has priced its initial public offering at $51 a share, and it could be the motor behind some of the upsides potentially expected today on the US markets. Now, this pricing makes its fully diluted market capitalization at over $54 billion at the $51 offer price. The offering is at the top of ARM's expected price range of between $47 to $51, so it's blown away all of the doubters on this.
SoftBank
The company will start trading today under the symbol ARM. Provided that the 95.5 million shares sold are out in the market today successfully, this would raise $4.87 billion for SoftBank. Is this a good deal for SoftBank? Well, the valuation is at $54 billion, $10 billion lower than ARM's valuation when SoftBank bought 25%. It didn't really own the business, but it's $14 billion higher than the price agreed with NVIDIA before the transaction was aborted.
ARM's IPO
So now ARM is riding the wave of what some are perceiving to be a new era for Initial Public Offer (IPO)s in the market. I don't see it. It is coming up from an extremely low base, nearly a two-year pause in IPOs. It's set to be the most significant listing on the market for the year so far. So ARM holding is getting underway on the NASDAQ, on the New York Stock Exchange, a little bit later on today.
NASDAQ
So, let's take a look at what's going on with the NASDAQ. So, the NASDAQ, as I said, is a new era for IPOs. It's set to be the most significant listing on the market for the year so far. It's set to be the most significant listing on the market for the year so far. So, let's take a look at what's going on with the NASDAQ.
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