Chipmaker Arm Targets IPO Worth More than $50 Billion—Even After Reduced Forecast

British chipmaker Arm hopes to score a valuation that tops $50 billion in an upcoming IPO, which would make the listing the biggest debut of the year even after the company has lowered its projections for the offering. The IPO will offer a signal about the market's strength after a months-long freeze in new listings, as well as reflect investor appetite for companies like Arm that have leading roles in the artificial intelligence boom.

Arm hopes to raise as much as $4.9 billion from its initial public offering, according to a new Securities and Exchange Commission filing, down from an earlier goal of $8 to $10 billion. It will sell 95.5 million shares—priced between $47 to $52—that represents 10% of the company. Arm's owner, Softbank Group, will retain the other 90%.

The company will begin its investor roadshow Tuesday before its official listing on Sept. 14.

Ten of Arm’s top chip customers, including Apple, Samsung, Nvidia and Google, intend to back the company as investors. Combined, Arm’s clients could pay as much as $735 million. Advanced Micro Devices, MediaTek, Taiwan Semiconductor Manufacturing Company, Synopsys and Cadence Design Systems round up the list of investors participating in the offering.

Apple’s investment in Arm is a full circle moment. Some 30 years ago, Apple backed Arm’s founding and has later helped it become one of the leaders in AI technology.

Apple’s flagship devices—the iPhone, Mac, iPad, Apple Watch and more—all contain Arm’s chips. By investing in Arm, Apple could consolidate its manufacturing needs: The company can have Arm design its custom chips, then have Taiwan-based Foxconn or another manufacturers produce them.