Image Source: Kevin Smith on Flickr

Arm wants to raise up to $4.87 billion as it goes live on Nasdaq this month, as per its filing with the Securities & Exchange Commission on Tuesday.

Arm is seeking $52 billion in valuation

The chip design firm will list a total of 95.5 million American depositary shares at a price of between $47 and $51.

Top end of that range translates to a valuation of about $52 billion versus $32 billion that Softbank paid for it in 2016. According to Avery Spear – a Senior Analyst at Renaissance Capital:

Arm is expected to be a very big deal. It’ll be a good indicator for appetite in the IPO market. If it does well, it could easily be the deal that finally break the IPO logjam.

Arm saw its revenue inch down ever so slightly to $2.68 billion in its fiscal 2023 – which was a record number nonetheless.

Arm will be the biggest tech IPO of 2023

Softbank will continue to own about 90.6% of Arm after the IPO – but if underwriters exercise the option to buy another $735 million worth of its shares, ownership of the Japanese investment holding company will reduce to 89.9%.

Note that Arm is expected to be the biggest tech IPO of this year. On CNBC’s “Worldwide Exchange”, analyst Avery Spear added today:

We are seeing some very good signs heading into the fall. All the pieces are falling into place for a gradual pickup three year and leading into maybe a more normal market in 2024.

Reports earlier this year said big names like Nvidia and Amazon wanted to be an anchor investor in Arm that powers almost every premium smartphone around the world.  

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