Arm’s IPO orders are already ten times oversubscribed

(Bloomberg) – Arm Holdings Ltd.’s initial public offering is already 10 times oversubscribed and bankers plan to stop taking orders until Tuesday afternoon, people familiar with the matter say.

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Arm, which is owned by SoftBank Group Corp. will close its order book a day early on Tuesday but still plans to price its shares on Wednesday, the people said, asking not to be identified because the matter is private. It’s not uncommon for books to close early on an IPO, which often indicates strong demand.

The offering could be oversubscribed by up to 15 times by Wednesday, the people added. Nothing is final yet and IPO orders can change at any time. The Financial Times previously reported that the Arm order book would be closed early.

A representative for Arm declined to comment.

Bloomberg News previously reported that Arm is still considering raising the price range of its IPO. Arm filed to go public at a price of $47 to $51 per share, which could value the company at $54.5 billion at the high end of the range.

SoftBank shares rose as much as 3.8% during morning trading in Tokyo, heading for a third straight day of gains. The stock is up about 20% since the start of the year.

Arm – which is a key part of the chip supply chain and develops semiconductors found in most of the world’s smartphones – had previously sought a valuation of $60 billion to $70 billion in its IPO. SoftBank bought the Vision Fund’s stake in Arm at a valuation of more than $64 billion. After the IPO, SoftBank will control approximately 90% of Arm shares, leaving a limited float in the market.

Read more: Arm’s $55 billion IPO reeks of bankers’ desperation: Shuli Ren

The story goes on

A successful debut for Arm would be a windfall for SoftBank founder Masayoshi Son, whose Vision Fund suffered a record loss of $30 billion last year. The listing could also revitalize the U.S. IPO market, with online grocery delivery company Instacart Inc. and marketing and data automation provider Klaviyo Inc., among others, poised to move forward with their initial share sales.

– With support from Ian King.

(Updates with SoftBank stock reaction in sixth paragraph.)

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