Strong Demand Marks Arm IPO

Banks underwriting Arm’s IPO closed orders 24 hours earlier than initially planned due to being oversubscribed by up to ten times. The IPO was met with such strong demand that if orders were to continue for another day, it could be oversubscribed by 15 times.

The offering looks set to be the biggest IPO in nearly two years. It is not uncommon for banks to close orders earlier than initially planned, usually an indication of strong demand. Pricing of Arm’s shares is still expected to take place today and will land in the top end or higher than the initial range of $47 to $51 per share.

At the top end, the IPO would raise $4.9 billion for Arm’s parent SoftBank Group and give the company a value of $54.5 billion. Several major technology companies have shown interest in the IPO, with possible investments from Apple, Google, Nvidia, Samsung, TSMC, and Intel, among others. SoftBank had initially sought a valuation of $60 billion to $70 billion for Arm after the IPO, with hopes of raising a minimum of $8 billion from the sale of around 10% of the company.