Arm, a UK-based manufacturer of microprocessors, has announced that it has submitted documents in the US for an offering of its shares.
A company based in Cambridge, manufacturing chips for gadgets ranging from phones to gaming consoles, aims to list on New York's Nasdaq in September.
Arm did not discuss the amount of shares to be offered or their value; however, its suggested initial public offering could be the premier listing of the year.
The firm decided not to list shares in London during March, which was a setback for the UK.
On Monday, Arm revealed that it has submitted a registration statement to the public regarding a planned IPO. They noted that the amount of shares to be offered and the price range have yet to be decided.
It is said that the company is aiming for an appraisal worth between $60bn and $70bn.
In 2016, Softbank, a Japanese conglomerate, acquired Arm in a transaction worth £23.4bn. Arm had been listed in both London and New York for a period of 18 years prior to the takeover.
The Taiwan Semiconductor Manufacturing Company and other companies such as Apple and Samsung utilize its chip design instructions and technologies to fabricate their own processors.
The act of having a company listed on a stock exchange transforms it from a private organization to a public one, thus allowing investors to purchase and trade the company's stock on certain exchanges.
It was previously reported that the organization had aimed to raise from $8 billion to $10 billion in their listing on the well-known Nasdaq tech exchange. Many major tech corporations, such as Google, Apple, and Facebook, have their stocks listed on Nasdaq.
Private businesses can raise funds by initiating a listing on a stock exchange.
For an Initial Public Offering (IPO), corporations allow investors to purchase shares prior to listing them on the stock exchange.
Generally speaking, investment banks selected by the business typically determine the cost of the shares.
Once the shares start to be offered to the public, their prices are determined by the forces of supply and demand. The sum of the value of the individual shares multiplied by the total number of shares equals the company's market capitalization.
Established in 1990, Arm has earned itself the designation of being known as the "crown jewel" of the UK's technology sector.
It was reported in January that Prime Minister Rishi Sunak had resumed negotiations with the proprietor of Arm concerning a listing on the London Stock Exchange.
However, the company declared that it did not intend to seek a listing on a stock exchange in the United Kingdom, commenting that the United States was "the most beneficial way ahead".
Concerns were raised that the UK market was not doing enough to draw tech company stock offerings, with US exchanges being considered to offer higher profiles and prices.
Rene Haas, Arm's CEO, has made clear that the company will maintain its intellectual property, headquarters and operations within the UK.
The recent filing indicates Softbank is persevering with the multi-billion dollar sale regardless of the intricate financial conditions in the international markets.
The amount of stocks offered on the market has dropped significantly since Russia's aggression towards Ukraine. In addition, share prices of major technology firms have sharply decreased due to the outbreak of the Coronavirus.
The chip-producing business has experienced a decrease in demand due to the scarcity of semiconductors brought about by the pandemic.
The sales of Arm declined to a total of $2.68bn for the year ending on 31 March, which was adversely affected by the fall in international cellphone shipments. Sales for the three months leading up to 30 June dropped 2.5% to reach $675m.
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