SoftBank-backed Arm's IPO already oversubscribed by 10 times
Arm Holdings's initial public offering (IPO) is already oversubscribed by 10 times, with bankers planning to stop taking orders earlier than expected. The successful debut of the chip designer controlled by SoftBank Group could provide a windfall for SoftBank founder Masayoshi Son and revitalize the US IPO market, making it the world's largest listing this year.
Arm Holdings is considering raising IPO price range
Due to high demand, Arm Holdings is considering raising the price range of its IPO. Initially filed at $47 to $51 a share, the company would have been valued at $54.5 billion at the high end of the range. Arm aims to raise as much as $4.87 billion by offering 95.5 million American depositary shares within the adjusted price range.
SoftBank to retain 90% control after IPO
Post-IPO, SoftBank will control approximately 90% of Arm's shares, leaving a limited free float in the market. Arm plays a crucial role in the chip supply chain, designing semiconductors found in most smartphones worldwide. SoftBank shares have risen as much as 3.8% during morning trade in Tokyo, with a 20% increase since the start of the year.
Arm forecasts strong revenue growth ahead
During investor roadshows, Arm projected an 11% revenue growth in its current fiscal year and a mid-20% increase in fiscal 2025, driven by demand for chips in data centers and artificial intelligence. The final pricing of Arm's IPO is expected on Wednesday, with the stock set to begin trading on Thursday.
