Informed sources revealed that Arm Holdings Ltd. The initial public offering (IPO) has been 10 times oversubscribed, and banks plan to stop accepting subscriptions by Tuesday afternoon. Informed sources, who asked not to be named because the matter is private, said SoftBank Group’s Arm will end subscriptions a day early on Tuesday, but still plans to price on Wednesday. It's not uncommon for IPOs to stop subscriptions early, which usually indicates strong demand.
The offering could be up to 15 times oversubscribed by Wednesday, the people added. Nothing has been finalized yet, and the IPO order may change.
A representative for Arm declined to comment.
reported earlier that Arm is still considering increasing the price range for its IPO. As final pricing of an IPO approaches, underwriters typically try to create positive momentum. The Financial Times previously reported that Arm subscription will end early.
Arm is seeking to issue shares at a price of $47-$51 per share, which would value it at $54.5 billion at the cap.