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The Financial Times, citing bankers pitching to investors, stated the IPO is more than five times oversubscribed, while Reuters reported that it is currently more than six times oversubscribed.
The chip designer owned by SoftBank (TYO:9984) Group Corp has filed for an IPO, and while the oversubscription is not a guarantee of a strong IPO performance, it does provide a positive sign.
Reuters said a person familiar with the matter informed them of the oversubscription.
The news also means it is more likely the company will reach its targeted price range of $47 to $51 per share. Earlier this week, it was revealed that Arm had cut its targeted valuation.
The $47 to $51 per range values Arm at between $50 billion and $54.5B, a climb-down from the previous $64B valuation. However, if Arm is able to attract enough investor demand, it is possible it could seek a higher valuation, although so far, that has not become clear.
