Arm targets valuation of up to $52bn in IPO

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Arm intends to set the price of its forthcoming initial public offering (IPO) between $47 to $51 for each share. This recent amendment in the filing aims to generate a substantial amount of $4.9 billion for its existing proprietor, SoftBank. Furthermore, this valuation of the British chip designer is estimated to reach a maximum of $52 billion.

Apple, Google, Nvidia, Intel, and TSMC, among other major investors, have expressed their intention to acquire Arm shares at the IPO price, amounting to a potential investment of $735 million, as declared by the company.

SoftBank splurged a whopping $32 billion to obtain Arm back in 2016. However, their newest objective falls short of the recently estimated $64 billion valuation from their own Vision Fund, a mammoth $100 billion investment fund backed by Saudi Arabia, which happens to be under the stewardship of the Japanese conglomerate.

SoftBank will retain 90.6 percent ownership of the company after the IPO, predicted to be finalized next week. Both firms will kickstart their campaign to promote the offering, an eagerly anticipated event for this year, to potential investors in New York on Tuesday.

The situation is still unfolding.