Arm valued at $54.5 bln in year's biggest IPO

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1 年前

STORY: Chip designer Arm starts trading Thursday (September 14) on New York’s Nasdaq exchange after a blockbuster share offering.

It secured a valuation of $54.5 billion - at the top of its target range.

That marks a good outcome for Japanese owner SoftBank.

Last year it had planned to sell Arm to chipmaker Nvidia for just $40 billion.

It abandoned the deal amid opposition from competition watchdogs.

Instead it retained control, and has now raised close to $5 billion through the IPO - the biggest of the year.

The success of the sale was in little doubt after Arm attracted a roll call of big-name investors.

Among those to buy in were chip giants Intel and AMD…

Consumer titans Apple and Samsung…

And Google parent firm Alphabet.

Some investors do have their doubts though, pointing to weak demand for mobile phones - the main market for Arm’s chips.

But the firm says it sees strong growth ahead in other sectors, including cloud computing and cars.