SoftBank's Arm Holdings Launches IPO Roadshow

Updated on: 6 September 2023 5:24 pm

SoftBank has sold its stake in FirstCry to Ranjan Pais MEMG Family Office, Harsh Mariwalas Sharp Venture, and Hemendra Kotharis DSP family office

Japanese Investment SoftBank sells Its Stake In E-Commerce Platform FirstCry Photo: SoftBank has sold its stake in FirstCry to Ranjan Pai's MEMG Family Office, Harsh Mariwala's Sharp Venture, and Hemendra Kothari's DSP family office

SoftBank’s Arm Holdings has launched roadshow for its long-anticipated IPO on Tuesday. The company is aiming to launch an IPO with a $52 billion valuation this year. The IPO is expected to raise up to $4.87 billion, valuing the company at up to $54.5 billion. SoftBank will own 90.6 per cent of Arm's shares after the offering closes.

The roadshow began in Baltimore. Asset manager company T Rowe Price, known for major investments in public stock listings, is located here. It also includes Rivian Automotive Inc, an electric car maker which was valued at $66.5 billion in its IPO in 2021. Arm's IPO is the largest since then.

On Tuesday, Arm also met with other potential investors in the company, like Arlington, Virginia-based Sands Capital on Tuesday, according to media reports.

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SoftBank is planning to raise up to $4.87 billion at the top of the range. It is offering 95.5 million American depository shares of Cambridge, and England-based Arm for $47 to $51 apiece.

The company's expected valuation is $54.5 billion after issuing shares as employee compensation. The proposed range values the firm between $48 billion and $52 billion.

This valuation is a decrease from the $64 billion valuation set by the Japanese firm, SoftBank, last month. SoftBank acquired the remaining 25 per cent stake in the company from its $100 billion fund.

Following the IPO, SoftBank will own 90.6 per cent of Arm's ordinary shares, with no proceeds going to the company from the offering. Key investors in Arm's IPO include Apple, Nvidia, Alphabet, Advanced Micro Devices, Intel, and Samsung Electronics. Investors have expressed interest in purchasing a total of $735 million worth of stock in the offering.

Established in 1990, Arm Holdings is a joint venture between Acorn Computers, Apple Computer, and VLSI Technology. From 1998 to 2016, its shares traded on the London Stock Exchange and the Nasdaq from 1998 until 2016, when it was taken private by SoftBank in a deal that valued it at $32 billion.