Arm Holdings Limited – IPO Fact Sheet
September 13, 2023
Offering 95,500,000 shares at US$47-US$51 per share for a total offer amount of US$5.2bn.
Largest IPO valuation of ~US$55bn with 1,026,078,866 shares outstanding.
ARM mainly generates revenue from licensing and royalty fees from its semiconductor architecture design. It does not sell or manufacture any semiconductors.
Top end of IPO range will put ARM’s LTM P/S ratio at 20x, with a LTM P/E ratio of 105x.
Peer valuation of Broadcom and Qualcomm are 31x and 10x LTM P/E, respectively.
IPO Details
Semiconductor chip designer ARM’s highly anticipated initial public offering (IPO) is set to list on the Nasdaq this coming Thursday (14th Sep 23), in what appears to be the most valuable IPO in market history.
The company is looking to offer 95,500,000 vendor shares at a price per share of US$47-US$51, at an offer amount of ~US$5.2bn, with a lock up period of 180 days for company insiders.
This would value ARM at ~US$55bn, making it the world’s largest IPO in history, and 38% higher than NVDA’s proposed US$40bn acquisition last year.
ARM has since enticed many of its major customers to subscribe to its IPO, contributing to the 10x oversubscription. It has also said that it would not offer any more shares, which we think could lead to ARM pricing its offering slightly above its guided per share range of US$47-US$51.
Source: Phillips
https://www.stocksbnb.com/reports/arm-h ... act-sheet/