Arm’s Massive IPO Puts £40bn Valuation on UK Chip Designer as Trading Begins on Wall Street


Arm, the British chip designer, has begun trading on Wall Street in what is expected to be the largest US public listing this year. The company, which is backed by Japanese owner SoftBank, has secured enough investor support to reach the top end of its share price range, valuing the firm at over £40bn ($54.8bn). Only 10% of the company’s shares will be available for trading in New York, raising approximately £4bn ($5.5bn) for SoftBank, which will retain a 90% stake. Arm’s decision to list in the US instead of London comes as a blow to the London Stock Exchange. The company, which designs chips for smartphones and holds a 99% share of the mobile phone market, hopes to expand into cloud computing and artificial intelligence. The initial public offering (IPO) has primarily attracted institutional investors and tech giants, including Apple, Nvidia, Google, Intel, and Samsung Electronics. However, retail investors may need to wait for shares to begin trading before purchasing at potentially higher prices.

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Frequently Asked Questions (FAQs) Related to the Above News

Why has Arm chosen to list on Wall Street instead of the London Stock Exchange?

Arm decided to list on Wall Street instead of the London Stock Exchange to tap into the larger US capital market and attract more investors. This decision also aligns with Arm's plans to expand into cloud computing and artificial intelligence, which are prominent sectors in the US market.

How much is Arm valued at after its IPO?

After its initial public offering (IPO), Arm is valued at over £40bn ($54.8bn).

How many shares of Arm will be available for trading in New York?

Only 10% of Arm's shares will be available for trading in New York.

How much will SoftBank, Arm's Japanese owner, raise through the IPO?

SoftBank is expected to raise approximately £4bn ($5.5bn) through the IPO, retaining a 90% stake in Arm.

Which tech giants and companies have invested in Arm's IPO?

Prominent tech giants and companies such as Apple, Nvidia, Google, Intel, and Samsung Electronics have invested in Arm's IPO.

Will retail investors have immediate access to trade Arm's shares?

Retail investors may need to wait for shares to begin trading before purchasing, and they should be prepared for potentially higher prices as demand for the shares may increase.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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