The Arm US headquarters in San Jose, California, on Wednesday, Sept. 6, 2023.
David Paul Morris | Bloomberg | Getty Images
Arm, the chip design firm that supplies core technology to firms including Apple and Nvidia, priced its IPO at $52 a share, according to a source familiar with the matter.
Arm is listing at least 95.5 million American depository shares on the Nasdaq, and SoftBank, its current owner, will control about 90% of the company’s outstanding shares.
The offering is priced above Arm’s expected price range of $47 to $51. The company will trade under the symbol “ARM.”
Arm said in its prospectus that revenue in its fiscal year that ended in March slipped less than 1% from the prior year to $2.68 billion. Arm reported $524 million in net income, down 22% from 2022.
Arm is riding the wave of excitement around artificial intelligence to raise investor capital. It could kick open the market for technology IPOs after a nearly two-year pause. It’s set to be the biggest technology IPO of the year.
Many of Arm’s most important customers, including Apple, Google, Nvidia, Samsung, AMD, Intel, Cadence, Synopsis, Samsung and Taiwan Semiconductor Manufacturing Company, will buy shares as part of the offering. Its technology is used in 99% of mobile processors around the world.
Arm’s architecture outlines out how a central processor works at its most basic level, such as how to do arithmetic or how to access computer memory. It was originally founded in 1990 to build chips for devices with batteries, and took off when it started to be widely used in smartphone chips. Arm’s instruction set uses less power than the x86 architecture used in PC and server chips by Intel and AMD.