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2023-09-06 –

Raw: [The UK-based firm is courting investors as its listing in the US looks to be the biggest of the year.] Arm Holdings: Chip giant hopes for market value of more than $50bn – BBC NewsBBC HomepageSkip to contentAccessibility HelpYour accountHomeNewsSportReelWorklifeTravelFutureMore menuMore menuSearch BBCHomeNewsSportReelWorklifeTravelFutureCultureMusicTVWeatherSoundsClose menuBBC NewsMenuHomeWar in UkraineClimateVideoWorldUS & CanadaUKBusinessTechScienceMoreEntertainment & ArtsHealthIn PicturesBBC VerifyWorld News TVNewsbeatBusinessMarket DataNew Tech EconomyArtificial IntelligenceTechnology of BusinessEconomyCEO SecretsCompaniesCost of LivingArm Holdings: Chip giant hopes for market value of more than $50bnPublished13 hours agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesImage caption, Arm's chips are used in devices such as smartphonesArm, the UK-based chip designer, is hoping to clinch a market value of more than $50bn (£40bn) in its first sale of shares to the public since 2016.The company, which designs chips for devices including smartphones and game consoles, is seeking to raise nearly $5bn in the listing in the US.Expected to be the biggest offering of the year, it is seen as a test of market confidence. It follows heavy lobbying from the UK government to list in London.Prime Minister Rishi Sunak had personally intervened in talks before the decision to pursue the listing on the Nasdaq was announced earlier this year.Is London's stock market losing its lustre?Critics say £1bn for UK chip industry not enoughThe US is beating China in the battle for chipsChief executive Rene Haas has said the company will keep its material intellectual property, headquarters and operations in the UK Jamie Urqhuart is a co-founder of Arm and previously held chief operating officer and chief strategy officer roles at the business. He told BBC Radio 4's Today programme that it was clear that London was not the right market for Arm and the decision to not list here was"as an indictment of the economics" referring to the UK economic and labour outlook. Mr Urqhuart also suggested that British export restrictions on technology risked holding back the industry going forward.A star of the British tech industry, Arm Holdings estimates that 70% of the world's population uses products that rely on its chips, including nearly all of the world's smartphones. The company is owned by Japanese investment giant Softbank, which took over the company in 2016 in a deal that valued the firm at $32bn. Prior to the purchase, it was listed in both London and New York for 18 years.Softbank will continue to own 90% of the company's shares after the share sale, which is smaller than initially proposed. Shares are expected to start trading next week.In a regulatory filing on Tuesday, Arm said it was selling 95,500,000 shares in the deal at a price expected to be between $47 and $51 per share. That would put its market value at between roughly $50bn and $54bn.It said it had already lined up some of its big-name customers, including Apple, Google and Nvidia, as investors, who have committed to buying about $735m worth.Softbank, which faced big losses on investments such as co-working firm WeWork, had previously explored selling Arm to Nvidia in a deal worth about $40bn. That effort was dropped in 2022 after authorities raised competition concerns.The latest plan offers a way to gradually reduce its holdings.With semiconductors at the frontline of the power struggle between the US and China over technology, the share offering is being closely watched.China accounts for about 25% of the company's sales, which have been hurt by a slump in smartphone shipments in recent months. The company has previously reported that overall revenue was roughly flat for the year ending 31 March.Related TopicsNASDAQCompaniesARM HoldingsSemiconductorsMore on this storyUK microchip giant files to sell shares in USPublished21 AugustArm opts for US-only stock market listingPublished3 MarchTop StoriesScientists grow whole model of human embryoPublished8 hours agoProsecutors want to indict Hunter Biden this monthPublished2 hours agoThe YouTube star killed by her fatherPublished23 hours agoloadingFeaturesPalestinians set out terms for Saudi-Israeli dealSlums hidden as India puts on its best face for G20The YouTube star killed by her fatherStarfield creator defends long video gamesLies fuel racism ahead of historic Australia voteThe million-dollar hustle changing US sportClimate change and crocodiles in a Kenyan lakeUkraine’s cyber-teams duel with Russians on front linesWorry at antibiotics overuse at India's Kumbh MelaElsewhere on the BBCFive of the best countries for expats in 2023How bad skin influences ageIs Hollywood self-destructing?Most Read1US man stopped in 'hamster wheel' ocean crossing2Scientists grow whole model of human embryo3Security lapse let killer 'crab walk' out of US jail4Biden honours Vietnam pilot who disregarded order5Trump suffers loss in E Jean Carroll defamation case6Lee could become 'extremely dangerous' hurricane7The YouTube star killed by her father8Terror suspect escapes prison by hiding under van9Prosecutors want to indict Hunter Biden this month10Palestinians set out terms for Saudi-Israeli dealBBC News ServicesOn your mobileOn smart speakersGet news alertsContact BBC NewsHomeNewsSportReelWorklifeTravelFutureCultureMusicTVWeatherSoundsTerms of UseAbout the BBCPrivacy PolicyCookiesAccessibility HelpParental GuidanceContact the BBCGet Personalised NewslettersWhy you can trust the BBCAdvertise with us© 2023 BBC. 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