SoftBank's Arm eyes up to $64.1 billion valuation in likely stellar Nasdaq debut
Nasdaq debut on Thursday, as shares of the chip designer were set to blow past their offer price.
Its stock was indicated to open at $60 per American Depositary Share versus the initial public offering (IPO) price of $51.
The company had secured a valuation of $54.5 billion on Wednesday after pricing its IPO at the top end of its marketed range.
Arm was taken private seven years ago for $32 billion by SoftBank, which has been looking to cash out some of its stake since at least 2020, when it signed a $40 billion deal with chipmaker Nvidia for Arm.
The plans, however, were abandoned less than two years later due to regulatory roadblocks.
Since then it has pivoted towards an IPO, though that also came with its own hurdles, including run-ins with the British government that was campaigning for a London listing for the chip designer.
Arm's return as a public company represents a climb-down from the $64 billion it was valued at last month when the Japanese investment giant acquired the 25% stake it did not directly own from its Vision Fund unit.
The IPO fetched $4.87 billion for SoftBank, which still holds a 90.6% stake in Arm, according to a regulatory filing.
Cornerstone investors including Apple, Intel and Alphabet also participated in the offering.
Hopes of a revival in the IPO market largely depend on the success of the high-profile listings of Arm and other marquee startups, including grocery delivery firm Instacart and marketing firm Klaviyo.
Investors have over the last year begun to pay more attention to profitability, shunning cash-burning startups that had in 2021 fetched lofty valuations on the back of a record year for deals.
«HYPED LISTING»
«The Arm IPO is the most hyped listing we've had in the markets for a
