(Bloomberg) — Arm Holdings Ltd.’s initial public offering has already been more than 10 times oversubscribed and bankers plan to stop taking orders by Tuesday afternoon, people familiar with the matter said.
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Arm, controlled by SoftBank Group Corp., will close its order book a day early on Tuesday, but still plans to pay the stock price on Wednesday, according to the people, who asked not to be identified because the matter is private. It is not uncommon for books to close early on an IPO, which often indicates strong demand.
The offering could be oversubscribed up to 15 times by Wednesday, the people added. Nothing is finalized and IPO orders are always subject to change. The Financial Times had earlier reported that the arm’s order book would close early.
A representative for Arm declined to comment.
Arm is still considering raising the price range of its initial public offering, Bloomberg News previously reported. Arm has offered for the IPO at $47 to $51 a share, which could value the company at $54.5 billion at the high end.
Shares of Softbank rose as much as 3.8% in morning trade in Tokyo, heading for a third straight day of gains. The stock is up nearly 20% since the start of the year.
Arm — a key part of the chip supply chain, designing the semiconductors found in most of the world’s smartphones — previously sought a valuation of $60 billion to $70 billion in an IPO. SoftBank bought Vision Fund’s stake in Arm for more than $64 billion. After the IPO, SoftBank will control about 90% of Arm’s shares, leaving it with some free float in the market.
Read more: Arm’s $55 billion IPO spells banks’ desperation: Shuli Ren
Arm’s successful debut gives SoftBank founder Masayoshi Son a headwind, whose Vision Fund lost a record $30 billion last year. The listing could invigorate the U.S. IPO market, with online grocery delivery firm Instacart Inc. among those set to pursue initial public sales. and marketing and data automation provider Clavio Inc.
–With help from Ian King.
(Updates on the sixth paragraph of Softbank’s share response.)
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