Arm prices IPO at $52 per share, valuing chip designer at $55.5 billion
The Arm US headquarters in San Jose, California, on Wednesday, Sept. 6, 2023.
David Paul Morris | Bloomberg | Getty Images
Arm, the chip design firm that supplies core technology to companies including Apple and Nvidia, priced its IPO at $52 a share, according to a source familiar with the matter.
Arm’s fully-diluted market cap, which includes outstanding restricted stock units, is about $55.5 billion at the $52 offer price.
The UK-based company is listing at least 95.5 million American depository shares on the Nasdaq, and SoftBank, its current owner, will control about 90% of the company’s outstanding shares.
The offering is above Arm’s expected price range of $47 to $51. The company will start to trade on Thursday under the symbol “ARM.”
Arm said in its prospectus that revenue in its fiscal year that ended in March slipped less than 1% from the prior year to $2.68 billion. Net income in fiscal 2023 dropped 22% to $524 million.
Arm is riding the wave of excitement around artificial intelligence as it aims to crack open the tech IPO market after a nearly two-year pause. It’s set to be the biggest technology offering of the year.
Arm’s valuation for a chip company is exceedingly rich when compared to any player in the market other than Nvidia. At $55.5 billion, Arm would carry a price-to-earnings multiple of over 106, based on profit in the latest fiscal year.
Nvidia is valued at 108 times earnings, but that’s after forecasting revenue growth of 170% for the current quarter, driven by AI chips. The Invesco PHLX Semiconductor ETF, which is designed to measure the performance of the 30 biggest U.S. chip companies, has a price-to-earnings ratio of about 25.
Many of Arm’s most important customers, including Apple, Google, Nvidia, Samsung, AMD, Intel and Taiwan Semiconductor Manufacturing Company, said they would buy shares as part of the offering. Arm’s technology is used in 99% of mobile processors around the world.
Arm’s architecture outlines out how a central processor works at its most basic level, such as how to do arithmetic or how to access computer memory. The company was originally founded in 1990 to build chips for devices with batteries, and took off when it started to be widely used in smartphone chips. Arm’s instruction set uses less power than the x86 architecture used in PC and server chips by Intel and AMD.
While some of Arm’s customers just use the instruction set and design their own CPUs, Arm also licenses entire designs of its own to chipmakers they can use as CPU cores in their own chips. Amazon uses Arm CPU designs in some of its server chips.
In a presentation to investors, Arm officials said the company has room to grow beyond just smartphones, and wants to design more chips for data centers and AI applications. It said it expects the total market for chip designs to be worth about $250 billion by 2025.
The StubHub logo is seen at its headquarters in San Francisco.
Andrej Sokolow | Picture Alliance | Getty Images
Online ticket platform StubHub is pricing its IPO at $23.50, CNBC’s Leslie Picker confirmed on Tuesday.
The pricing comes at the midpoint of the expected range that the company gave last week. At $23.50, the pricing gives StubHub a valuation of $8.6 billion. StubHub will trade on the New York Stock Exchange under the symbol “STUB.”
The San Francisco-based company was co-founded by Eric Baker in 2000, and was acquired by eBay for $310 million seven years later. Baker reacquired StubHub in 2020 for roughly $4 billion through his new company Viagogo, which operates a ticket marketplace in Europe.
StubHub has been trying to go public for the past several years, but delayed its public debut twice. The most recent stall came in April after President Donald Trump‘s “Liberation Day” tariffs roiled markets.
The company filed an updated prospectus in August, effectively restarting the process to go public.
The IPO market has bounced back in recent months after an extended dry spell due to high inflation and rising interest rates. Klarna made its debut on the NYSE last week after the online lender also delayed its IPO in April. Tyler and Cameron Winklevoss’ Gemini, stablecoin issuer Circle, Peter Thiel-backed cryptocurrency exchange Bullish and design software company Figma have all soared in their respective debuts.
At the top of the pricing range StubHub offered last week, the company would have been valued at $9.2 billion. StubHub had sought a $16.5 billion valuation before it began the IPO process, CNBC previously reported.
StubHub said in its updated prospectus that first-quarter revenue increased 10% from a year earlier to $397.6 million. Operating income came in at $26.8 million for the period.
The company’s net loss widened to $35.9 million from $29.7 million a year ago.
In this photo illustration, the logo of TikTok is displayed on a smartphone screen on April 5, 2025 in Shanghai, China.
Vcg | Visual China Group | Getty Images
President Donald Trump on Tuesday extended the deadline for ByteDance to divest TikTok’s U.S. business, which will be owned by an investor consortium that includes Oracle and Silver Lake, CNBC’s David Faber reported.
It’s the fourth time Trump has extended the deadline. The extension, as described in an executive order, precludes the Department of Justice from enforcing a national security law that would effectively ban TikTok in the U.S. until Dec. 16.
U.S. Treasury Secretary Scott Bessent revealed on Monday that a “framework deal” had been reached involving TikTok. Under the national security law, which would have come into effect on Wednesday, app store operators like Apple and Google and internet service providers would be penalized for providing services to TikTok’s U.S. operations if a deal was not reached.
Under the framework deal, about 80% of TikTok’s U.S. business would be owned by an investor consortium that includes Oracle, Silver Lake and Andreessen Horowitz, the Wall Street Journal on Tuesday reported. As part of the arrangement, existing U.S. users would need to shift to a new app, according to report.
Trump and Chinese President Xi Jinping are expected on Friday to discuss the terms of the TikTok-related deal that Treasury Secretary Scott Bessent revealed on Monday.
The deal, which is expected to close in the next 30 to 45 days, includes new investors, existing ByteDance investors and will result in Oracle maintaining its cloud computing agreement with TikTok, CNBC’s David Faber reported earlier on Tuesday.
Bessent said Tuesday during CNBC’s Squawk Box that Trump was willing to let TikTok “go dark,” which spurred China to agree to a deal. The Treasury Secretary said that the deal’s commercial terms had already been finalized “in essence” since March or April, but China put the deal on hold following Trump’s tough tariffs and trade policies.
“We were able to reach a series of agreements, mostly for things we will not be doing in the future that have no effect on our national security,” Bessent said Tuesday.
A senior White House official said in a statement that, “Any details of the TikTok framework are pure speculation unless they are announced by this administration.”
TikTok did not reply to a request for comment.
WATCH: Trump’s willingness to let TikTok go dark motivated China to make deal.
Microsoft CEO Satya Nadella speaks at Microsoft Build AI Day in Jakarta, Indonesia, on April 30, 2024.
Adek Berry | AFP | Getty Images
LONDON — Microsoft said on Tuesday that it plans to invest $30 billion in the U.K. by 2028, as the company builds out its artificial intelligence infrastructure.
The investment includes an additional $15.5 billion in capital expansion and $15.1 billion in its U.K. operations, Microsoft said. The company said the investment would enable it to build the U.K.’s “largest supercomputer,” with more than 23,000 advanced graphics processing units, in partnership with Nscale, a British cloud computing firm.
The spending commitment comes as President Donald Trump embarks on a state visit to Britain. Trump arrived in the U.K. Tuesday evening and is set to be greeted at Windsor Castle on Wednesday by King Charles and Queen Camilla.
During his visit, all eyes are on U.K. Prime Minister Keir Starmer, who is under pressure to bring stability to the country after the exit of Deputy Prime Minister Angela Rayner over a house tax scandal and a major cabinet reshuffle.
On a call with reporters on Tuesday, Microsoft President Brad Smith said his stance on the U.K. has warmed over the years. He previously criticized the country over its attempt in 2023 to block the tech giant’s $69 billion acquisition of video game developer Activision-Blizzard. The deal was cleared by the U.K.s competition regulator later that year.
“I haven’t always been optimistic every single day about the business climate in the U.K.,” Smith said. However, he added, “I am very encouraged by the steps that the government has taken over the last few years.”
“Just a few years ago, this kind of investment would have been inconceivable because of the regulatory climate then and because there just wasn’t the need or demand for this kind of large AI investment,” Smith said.
Starmer and Trump are expected to sign a new deal Wednesday “to unlock investment and collaboration in AI, Quantum, and Nuclear technologies,” the government said in a statement late Tuesday.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment12 months agoHere are the best electric bikes you can buy at every price level in October 2024