Arm Holdings will come to market with a valuation of at least US$54.5 billion based on the interest shown in the chip designer's New York IPO, according to Reuters citing sources close to the process.
Advisors to the float have opted for the upper limit of its initial US$47-to-US$51-per-share range, and may even price its shares higher when they list on Nasdaq on Thursday, the source told the financial newswire.
The decision reflects strong investor demand but adheres to a conservative marketing approach to increase the likelihood of robust trading upon debut, the report said.
However, the valuation is a step down from the US$64 billion at which owner SoftBank acquired a 25% stake from its Vision Fund last month.
Yet, it still outperforms SoftBank's abandoned US$40 billion deal to sell Arm to Nvidia Corp, which faced antitrust regulatory opposition.
SoftBank initially took Arm private in 2016 for US$32 billion.
Major clients, including Apple, Nvidia, Alphabet, Advanced Micro Devices, Intel, and Samsung Electronics (KRX:005930), have already committed as cornerstone investors in the IPO.
Despite dominating the mobile phone market with a 99% share, Arm aims to convince investors of its growth potential in other sectors.
The company highlighted the cloud computing market, where it holds a 10% share, is expected to grow annually by 17% through 2025. The automotive market, where it has a 41% share, is also expected to expand by 16%.
Arm's overall sales have stagnated at US$2.68 billion due to weak mobile demand amid global economic slowdown.