Arm Holdings prices IPO at $51 a share, top of range (update)
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Update 5:40pm: Updates with company confirming IPO pricing.
Arm Holdings (ARM) priced its initial public offering on Wednesday at $51 per share, above a previously stated range.
ARM, majority-owned by Softbank Groupâs (OTCPK:SFTBY), sold more than 95.5 million shares giving it a valuation at more than $54 billion, according to a statement on Thursday. The offering was priced at the top of the expected range of $47 to $51.
Shares are expected to debut on Thursday on the Nasdaq and trade under the stock symbol ARM.
The IPO was oversubscribed by 10 times, according to Bloomberg. Taiwan Semiconductor Manufacturing Company Limited (TSM), Intel (INTC), Advanced Micro Devices (AMD), Nvidia (NVDA), Alphabetâs Google (GOOG), Apple (AAPL) and Samsung Electronics Co., Ltd. (OTCPK:SSNLF) planned to buy $735M of the float, CNBC reported.
The selling shareholder, a wholly-owned subsidiary of SoftBank, granted the underwriters an option to purchase up to an additional 7 million ADSs to cover over-allotment, if any, for 30 days after the date of the final prospectus. 
The British chip design firm, which has nearly 6,000 full-time employees, saw revenue for the fiscal year ended in March relatively flat at $2.679B compared to $2.703B a year earlier.
Net income from continuing operations for the year totaled $524M compared to $676M in the previous period.
For the calendar year ended Dec. 31, 2022, the company estimated that its total addressable market was approximately $202.5B, according to a filing. ARM forecast TAM will grow at a 6.8% compound annual growth rate to about $246.6B by the end of 2025.
âWe estimate that the aggregate value of chips containing Arm technology was approximately $98.9 billion in the calendar year ended December 31, 2022, representing an approximate 48.9% market share as compared to an approximate 42.3% market share as of December 31, 2020,â the company said in its prospectus.
The pricing news was earlier reported by CNBC and WSJ.

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