© Reuters. FILE PHOTO: A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
By Anirban Sen
NEW YORK (Reuters) – Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter.
Arm, owned by SoftBank (TYO:) Group Corp, is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day.
SoftBank plans to sell about 10% of Arm’s shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. SoftBank decided to sell fewer Arm shares in the IPO after buying the 25% stake in Arm it did not directly own from its Vision Fund unit.
Several customers of Arm have held talks about taking a piece of the IPO including Apple (NASDAQ:), Amazon.com (NASDAQ:), Intel (NASDAQ:), Nvidia (NASDAQ:), Alphabet (NASDAQ:), Microsoft (NASDAQ:), Samsung Electronics (KS:) and TSMC, Reuters has previously reported. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients.
A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba (NYSE:) Group, German telecommunications company Deutsche Telekom (OTC:) and U.S. wireless carrier T-Mobile U.S..
Goldman Sachs Group (NYSE:), JPMorgan Chase (NYSE:), Barclays and Mizuho Financial Group are the lead underwriters for the offering. Arm’s shares will be listed on the Nasdaq and trade under the ticker symbol ‘ARM’.
Bloomberg reported on Arm’s IPO timeline earlier on Thursday.
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