ARM Pricing -- Will Start Trading Tomorrow Morning -- September 14, 2023

Locator: 45638TECH.

Details:

• priced at $52 / share -- $1 / share larger than expected;
• set to raise at least $5 billion
• market value: $55.5 billion which makes it the largest IPO in several years
• reminder: the BRK / BNSF purchase was valued at about $45 billion -- many years ago
• links everywhere; this one at TWSJ.

Arm is preparing to price its shares at $52 apiece, as the British chip designer lays the groundwork for the biggest U.S. public offering of the year. 

The price will be set in a meeting Wednesday, September 14, 2023, afternoon between underwriters and company executives, according to people familiar with the matter. 

The situation remains fluid and the price could still shift. At a per-share price of $52, Arm would be valued at $55.5 billion on a fully diluted basis. That is below the $64 billion Arm owner SoftBank Group recently valued the company at when it bought out a stake held by its Vision Fund. 

SoftBank, the only seller in the offering, is set to raise at least $5 billion. 

The Japanese technology investor had planned to sell shares at a price between $47 and $51 apiece but demand during the so-called roadshow to market the stock encouraged it to reach just above that range. In a sign of the importance of the deal to SoftBank, its chief executive, Masayoshi Son, was expected to attend Wednesday’s, September 14, 2023, pricing meeting virtually.

ARM is focused on CPUs, not GPUs.