Arm Holdings Ltd. is contemplating a potential increase in the price range for its upcoming initial public offering (IPO) following meetings with investors.
Sources familiar with the matter disclosed that the chip designer’s share sale has garnered approximately six times the demand required for the offering.
However, discussions are still ongoing, and no final decision has been reached.
Initially, Arm filed for its IPO with a price range of $47 to $51 per share, which would have placed the company’s valuation at $54.5 billion at the upper end of the range.
This range was slightly below the $60 billion to $70 billion valuation the company had initially sought earlier this year.
It is not uncommon for companies and their investment banks to consider adjusting the price range to generate positive momentum as they approach the final pricing of an IPO, which, in Arm’s case, is anticipated to occur on Wednesday.
Trading of the stock is set to commence the following day.
A recent report from Reuters suggested that Arm is in discussions regarding a potential price range increase and could potentially price the offering at the top of the range or higher. Arm declined to comment on this matter.
SoftBank Group Corp., which owns Arm, saw its shares rise by as much as 2.6%, achieving a 15% gain for the year thus far.
Arm has been aiming to raise up to $4.87 billion by offering 95.5 million American depositary shares within the $47 to $51 range. Any upward revision in the price range indicates strong demand for the company’s shares during its roadshow.
During the investor roadshow, Arm disclosed its expectations of 11% revenue growth in the current fiscal year, with a mid-20% range increase anticipated for fiscal 2025, driven by the growing demand for chips to support data centers and artificial intelligence, as previously reported by Bloomberg.
At an investor luncheon held in New York, Arm’s Chief Executive Officer Rene Haas highlighted that price increases have delivered a more substantial boost than seen historically.
Haas expressed his anticipation of robust growth continuing into the 2026 fiscal year, with revenue increases in the high-teen percentage range.
(Source: Bloomberg)
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