Cambridge-based chipmaker Arm is reportedly targeting a valuation of up to £70 billion for an initial public offering (IPO) this September.

Bankers earlier this year were pitching a range of valuations for the chipmaker starting at around $30 billion, and sources familiar with the matter told Bloomberg the current valuation of the British company, which was acquired by Japan’s SoftBank in 2016, was a sign of “bullish interest” in artificial intelligence (AI) chips.

The $30 billion ‘bottom-end’ valuation has reportedly long been viewed as “too low” by SoftBank head Masayoshi Son and Arm chief exec Rene Haas, with the report noting that the company may “still be gunning” for a valuation as high as $80 billion, yet noted the odds of achieving such a target were unclear.

People familiar with the matter previously told Bloomberg the group anticipates the IPO could raise “as much as $10 billion”, making it the highest globally in 2023 so far.

Earlier this year, Arm posted a 28 per cent revenue increase to $746 million in its third quarter of 2022 ended in December.

Despite UK prime minister Rishi Sunak courting SoftBank heads to list the IPO in London, it recently came to light that Softbank would snub the City in favour of New York, stating that it was the “best path forward” for the company.

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