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Hardware & electrical equipment

ARM mulls price hike for IPO after strong demand - report

Arm, the chip designer owned by SoftBank Group, is reportedly mulling raising the price of its US listing after strong demand for its shares.

Reports today said it is looking at a value of US$54.5 billion, which would be at the top end of its indicated US$47-to-$51-per-share, but sources quoted by Reuters said demand has been such that it might raise the range.

Books close for the float on Wednesday, but institutions are expected to have indicated by today how keen they are after which a decision over final pricing will be made.

Arm will not, however, offer more shares, according to the report, as SoftBank wants to retain a 90.6% stake following the IPO.

A US$64 billion valuation is reportedly what the company wants or the price at which Softbank tidied up its stake last month by acquiring the outstanding 25% owned by its Vision Fund.

Last week, ARM said sales for the year to March 2023 were flat at US$2.68 billion while sales in China accounted for a quarter of these.

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