Arm, a British company that designs microchips, has announced that it has filed documents to sell its shares in the United States.
In September, the Cambridge-based company that designs processors for devices ranging from smartphones to game consoles intends to list on the Nasdaq in New York.
Arm did not disclose the number of available shares or the price, but its proposed initial public offering (IPO) could be the largest this year. In March, in a setback to the United Kingdom, the company decided not to list its shares in London.
On Monday, Arm announced that it had filed a registration statement for an upcoming initial public offering.
It was stated that neither the number of shares to be offered nor their price range had been determined. However, the corporation is reportedly seeking a valuation between $60 billion and $70 billion.
Arm was acquired by the Japanese conglomerate Softbank in 2016 for a total of £23.4 billion. Prior to the acquisition, the company was listed in London and New York for 18 years.
Its semiconductor design instructions and technologies are utilized by Apple, Samsung, and Taiwan Semiconductor Manufacturing Company, among others, to create their own chips.
Previously, it was reported that the company aimed to raise between $8 billion and $10 billion through its Nasdaq listing. On the Nasdaq, other significant technology companies such as Google, Apple, and Facebook trade.
As a means of raising capital, private companies can initiate the listing procedure on a stock exchange. In a public offering, companies sell shares to investors prior to listing.
Typically, investment banks hired by the company to manage the process determine the share price. Once the shares become publicly traded, however, prices are determined by supply and demand.
The market value of the company is the product of the value of the shares multiplied by the number of shares outstanding. Arm was founded in 1990 and has been called the "crown jewel" of the United Kingdom's technology industry.
In January, it was reported that Prime Minister Rishi Sunak had resumed discussions with Arm's proprietor regarding a listing on the London Stock Exchange. However, the company stated that it had no plans to pursue a UK listing, citing the United States as its "best path forward."
The decision highlighted concerns that the UK market was not doing enough to attract stock offerings from technology companies, as US exchanges were perceived to offer more attractive profiles and valuations.
Rene Haas, the chief executive officer of Arm, has stated that the company will maintain its intellectual property, headquarters, and operations in the United Kingdom.
The most recent filing demonstrates Softbank's determination to proceed with the multibillion-dollar transaction despite the challenging global financial markets.
Since Russia's invasion of Ukraine, the number of stock market listings has dropped sharply. In the wake of the Covid pandemic, shares of key technology companies have also dropped.
In response to a severe scarcity of semiconductors during the pandemic, the chip manufacturing industry has experienced a decline in demand.
Due to a decline in global smartphone shipments, Arm's sales decreased to $2.68 billion in the year ending March 31. The revenue for the quarter ending 30 June fell 2.5% to $675 million.
