In a fervent display of investor interest, Arm Holdings Ltd.’s initial public offering (IPO) has surged to ten times oversubscription, insiders familiar with the matter revealed, further disclosing that bankers are slated to halt the acceptance of orders by Tuesday afternoon.
Controlled by SoftBank Group Corp. (9984.T) (SFTBY), Arm has opted to close its order book a day earlier than planned, though pricing remains scheduled for Wednesday, as stated by individuals who requested anonymity due to the confidential nature of the proceedings. Such a move is not uncommon and is often indicative of robust demand in IPO scenarios.
Insiders speculate that the oversubscription could skyrocket to a staggering fifteen fold by Wednesday. However, it is emphasized that these figures remain provisional, subject to potential alterations in the Arm Holdingds IPO orders. The Financial Times had previously anticipated an early closure of the Arm order book.
A spokesperson for Arm declined to provide comment.
Reports have emerged suggesting that Arm is deliberating an upward adjustment of its IPO price range. Bloomberg News had previously circulated information to this effect. Arm initially filed for its IPO at a range of $47 to $51 per share, a valuation that could catapult the company to $54.5 billion at the higher end of the spectrum.
During morning trade in Tokyo, SoftBank shares surged by as much as 3.8%, heralding a third consecutive day of gains. Since the onset of the year, the stock has seen an approximately 20% upswing.
Arm, a pivotal component of the chip supply chain renowned for its semiconductor designs embedded in a majority of the world’s smartphones, initially aspired to garner a valuation between $60 billion and $70 billion through its IPO. Notably, SoftBank secured the Vision Fund’s Arm stake at a valuation surpassing $64 billion. Following the IPO, SoftBank is set to exert control over roughly 90% of Arm’s shares, thus leaving only a limited free float available in the market.
Should Arm’s IPO witness a triumphant debut, it would signify a significant windfall for SoftBank founder Masayoshi Son, who grappled with a staggering $30 billion loss within the Vision Fund in the preceding year. Additionally, this listing holds the potential to breathe new life into the U.S. IPO market, with ventures such as online grocery delivery entity Instacart Inc. and marketing/data automation provider Klaviyo Inc. poised to embark on their inaugural foray into public share offerings.
Source: Bloomberg
