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Chip design firm Arm on Tuesday said it is looking to fetch as much as $4.87 billion in its upcoming blockbuster initial public offering (IPO) on the Nasdaq stock exchange in New York, according to a fresh filing.
The deal could value the company at as much as $52 billion.
Arm submitted its updated F-1 filing with the U.S. Securities and Exchange Commission, setting out its ambitions to once again become a publicly listed company. It was previously dually listed in London and New York, before Softbank acquired it for $32 billion in 2016.
As a British company, Arm qualifies as a foreign private issuer in the U.S. and its shares will count as American depositary shares, or ADSs. The company will list 95.5 million ADSs at a price range between $47 and $51.
Only 9.4% of Arm’s shares will be freely traded on the Nasdaq stock exchange in New York, with SoftBank expected to own roughly 90.6% of the company’s outstanding shares after the completion of the IPO.
The underwriters for the listing have an option to purchase up to an additional 7 million American depositary shares, worth $735 million. If they choose to purchase these shares, SoftBank’s ownership of Arm will be reduced to 89.9%, the company said.
Arm’s listing is set to be the biggest technology IPO of the year. Arm sees huge potential revenue opportunity for its technology, which it said in its IPO filing had a total addressable market (TAM) of $202.5 billion in 2022.
The firm sees this rising to $246.6 billion by the end of the calendar year ending on Dec. 31, 2025 — representing a compound annual growth rate of 6.8%.
Arm says its energy-efficient processor designs and software platforms are integrated into more than 250 billion chips globally, into products ranging from sensors and smartphones to supercomputers.