SoftBank Group-owned chip design company Arm priced a planned listing in the US below market expectations, despite reportedly confirming interest from major tech companies and many customers in a long-anticipated IPO.

A US Securities and Exchange Commission filing indicates Arm is seeking a valuation of up to $52 billion, with plans to list 95.5 million ordinary shares at a price range between $47 and $51 per share.

If the move hits the higher end of the range, SoftBank would raise about $4.9 billion, down from a previous target of a minimum of $8 billion.

Richard Windsor, founder of industry blog Radio Free Mobile, suggested the pricing is a sign the deal has not been plain sailing.

Windsor believes the listing is the first time the market will be able to vote on whether Arm is an AI company or a semiconductor IP company, arguing the latter would mean a more modest valuation which will be better for the long-term outlook for Arm regardless of what numbers SoftBank wants to record on its balance sheet.

He added everything will depend on the IPO roadshow for investors to “convince them that an AI-like valuation is warranted”.

Arm and SoftBank launched the roadshow this week.

The IPO is one of the most highly anticipated for years. Complicated the listing’s valuation is a downbeat mood of the IPO market which has be extremely slow for the past couple of years, Windsor noted.

CNN Business reported Arm indicated Apple, Google, Nvidia, Samsung, Intel, AMD and Taiwan Semiconductor Manufacturing Company are among companies expressing interest in buying up to $735 million in its shares when it goes public on Nasdaq,

Based on Arm’s previous filing, Bloomberg tipped its capitalisation at between $60 billion and $70 billion.