Holding company SoftBank Group (OTCMKTS:SFTBY) submitted an updated filing on Tuesday and has set a price per American Depository Share (ADS) between $47 and $51 for the initial public offering (IPO) of Arm Ltd. The UK-based chip designer is looking at raising $4.87 billion from this IPO and is targeting a valuation of $52.3 billion.
According to the company’s updated F-1 filing, only 9.4% of Arm’s shares will be traded freely on the New York Stock Exchange. Following the completion of the IPO, Softbank will own around 90.6% of Arm’s outstanding shares.
Arm will offer 95.5 million American Depository Shares in the IPO and is likely to list on the Nasdaq (NDX) under the symbol “ARM.” Each ADS will represent one ordinary share. SoftBank acquired Arm for $32 billion in 2016.
For investors interested in getting exposure to the semiconductor sector, the SPDR S&P Semiconductor ETF (XSD) is a good option. XSD has gained more than 30% year-to-date.
