A dose of reality is tempering the outlook for Arm Ltd.’s public listing as the chip designer kicks off its roadshow this week, lowering expectations of both the valuation and the amount to be raised.

The SoftBank Group Corp.-owned chip unit now seeks to raise $5 billion to $7 billion, down from as much as $10 billion it previously sought, Bloomberg News reported. The valuation could also end up in the range of $50 billion to $60 billion, instead of a previous target range of $60 billion to $70 billion.