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The British chip designer, which is owned by Japan’s SoftBank (TYO:9984) Group, may be able to price the highly-anticipated IPO at the top end — or even above — its stated range of $47 to $51 a share, Reuters added, citing people familiar with the matter.
Sources also told the news agency that, due to strong investor demand for the IPO, Arm is exploring possibly increasing that range to a level that could push its valuation above $54.5B. However, Arm will reportedly not be offering more shares, as SoftBank looks to maintain a 90.6% stake in the company following the flotation.
A decision on the price range may come this week, the unnamed sources told Reuters, although they warned that many investor commitments have yet to be finalized. Both Arm and SoftBank declined to comment to Reuters.
Arm is hoping to rake in roughly $5B from its sale of about 10% of the total shares outstanding, in what is expected to be the largest IPO this year.
