Arm hunts out investors for mega New York float
Arm hunts out investors for mega New York float
- Technology giant plans to ask investors to pay $47 (£37) to $51 per share
- Some big names already signed up as IPO investors in Arm include Apple
- Company was revealed to be targeting a valuation range of $50-55bn in its IPO
Cambridge chip designer Arm will embark on an investor roadshow this week ahead of becoming the most valuable float in New York in two years.
The technology giant plans to ask investors to pay $47 (£37) to $51 per share when it starts to market its IPO and hold meetings with potential investors this week, Reuters reported.
Some big names already signed up as IPO investors in Arm include Apple, Nvidia, Samsung and Google owner Alphabet.
The company was revealed to be targeting a valuation range of $50-55billion in its IPO, although this is below the $64billion quoted by its owner SoftBank in a recent transaction.
This would make Arm the most valuable company to list in New York since the $70billion debut of electric car maker Rivian Automotive in 2021.
Target: The technology giant plans to ask investors to pay $47 (£37) to $51 per share when it starts to market its IPO
SoftBank took Arm private for £24billion in 2016, tearing it away from the London Stock Exchange. SoftBank had hoped to sell Arm to US chip firm Nvidia but a £52billion ($66billion) deal in 2022 collapsed due to regulatory obstacles.
UK ministers then lobbied to SoftBank for a dual listing in London and New York but the City was left empty-handed.
Arm, whose products feature in about 90 per cent of smartphones, has seen an increasing demand for AI chips. The company is gunning for a record float valuation for a UK company when it lists as early as this month.
New York has become popular with tech entrepreneurs. Oxford-based vehicle maker Arrival was given a £10.6billion valuation on the Nasdaq in 2021.
The world’s largest building materials company CRH also warned it would move its primary stock market listing from London to the US while gambling giant Flutter plans an autumn New York listing.
British life-sciences company Abcam, already listed in New York, was snapped up by US medical giant Danaher in a £4.5billion deal last week.
Daniel Ives, senior equity analyst for Wedbush Securities, said: ‘There are a number of phenomenal technology and life sciences companies in the UK and all are acquisition candidates for bigger US firms.
‘This could be the tip of the iceberg as more UK based tech and life sciences companies get swallowed.’
London’s largest ever float was Glencore’s £38billion valuation in 2011.