Arm’s IPO orders are already oversubscribed by 10 times

ARM Holdings’s initial public offering (IPO) is already oversubscribed by 10 times and bankers plan to stop taking orders by Tuesday (Sep 12) afternoon, according to people familiar with the matter.

Arm, controlled by SoftBank Group, will close its order book a day early on Tuesday, but is still planning to price its shares on Wednesday, the sources 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 end up as much as 15 times oversubscribed by Wednesday, the sources added. Nothing is finalised and the IPO orders could always change.

A representative for Arm declined to comment.

Arm is still considering raising the price range of its initial public offering as well, Bloomberg News previously reported.

Underwriters generally try to create positive momentum as their clients head towards the final pricing of an IPO. The Financial Times previously reported that the Arm order book would close early.

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Arm filed for its IPO at US$47 to US$51 a share, which could value the company at US$54.5 billion at the high end of the range. BLOOMBERG