Arm Holdings is targeting a valuation of between US$50-55 billion, down from the US$64 billion valuation given by its owner, Softbank, last month.
The UK computer chip designer is preparing to start its IPO roadshow next week ahead of a long-awaited stock market float in New York.
The Financial Times reported that SoftBank was still optimistic that the final valuation would be higher than the initial range, citing one person familiar with Arm’s plans.
A person involved in the deal said preliminary meetings “testing the waters” with investors had gone well and that it was a common tactic for dealmakers on large tech listings to start roadshows with a conservative price range to help build momentum, the FT said.
Arm has been owned privately by the Japanese investment company SoftBank since 2016, when it was taken off the London Stock Exchange in a £24 billion deal.
Several of its largest customers in the technology sector have agreed to take part in the listing, including Apple, Samsung, Intel and Nvidia, according to the Financial Times.