Chip design firm Arm seeks up to $52 billion valuation in blockbuster U.S. IPO

Chip design firm Arm on Tuesday said it is looking to fetch as much as $4.87 billion in its upcoming blockbuster initial public offering on the Nasdaq stock exchange in New York, according to a fresh filing.

Arm submitted its updated F-1 filing with the U.S. Securities and Exchange Commission, setting out its ambitions to once again become a publicly listed company. It was previously dually listed in London and New York, before SoftBank acquired it for $32 billion in 2016.

As a British company, Arm qualifies as a foreign private issuer in the U.S. and its shares will count as American depositary shares, or ADSs. The company will list 95.5 million ADSs at a price range between $47 and $51. At the upper end of that range, CNBC estimates that Arm will likely raise up to $4.87 billion. At the lower end, the IPO would fetch $4.49 billion of fresh capital for Arm.

At the upper end of the pricing range, Arm would also attain a total valuation of $52 billion, according to CNBC calculations. At the lower end, its valuation would come in below $50 billion.

Only 9.4% of Arm’s shares will be freely traded on the Nasdaq stock exchange in New York, with SoftBank expected to own roughly 90.6% of the company’s outstanding shares after the completion of the IPO.

The underwriters for the listing have an option to purchase up to an additional 7 million American depositary shares, worth $735 million. If they choose to purchase these shares, SoftBank’s ownership of Arm will be reduced to 89.9%, the company said. $Arm Holdings (ARM.US)$ $SoftBank (9434.JP)$