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British chip design firm Arm Holdings (ARM) is reportedly gaining enough traction from investors to price its upcoming initial public offering at the top of the range, which would value the company at some $54B.
Arm, which is majority owned by SoftBank (OTCPK:SFTBY), has received strong demand from investors and could price the offering at the top of the $47 to $51 range or even above it, Reuters reported, citing people familiar with the matter.
Pricing details could still change as orders come in from investors, the news outlet explained.
Additional shares will not be sold, as SoftBank (OTCPK:SFTBY) wants to retain its 90.6% ownership stake, the news outlet added.
Separately on Monday, the Financial Times reported that the order book for the IPO was closed a day early, indicating strong demand.
Arm (ARM) and SoftBank (OTCPK:SFTBY) did not immediately respond to a request for comment from Seeking Alpha.
Earlier this month, Arm (ARM) updated its initial public offering filing and said it expects to sell 95.5M shares between $47 and $51 per share.
The price range would value Arm (ARM) between $50B and $54B and would be below the $64B valuation at which SoftBank purchased the 25% portion of the company it didn’t already own last month.
A group of influential tech companies have indicated an interest in “purchasing up to an aggregate of $735 million of the ADSs offered” in ARM’s offering, including Taiwan Semiconductor, Apple (AAPL), Google (GOOG) (GOOGL), AMD (AMD) and Nvidia (NVDA).
The group also includes Intel (INTC), MediaTek, Samsung (OTCPK:SSNLF) and Synopsys (SNPS).
Nvidia (NVDA) tried to acquire Arm for $40B but abandoned the deal in 2022 amid pressure from other semiconductor companies and regulators.
Arm was purchased by SoftBank (OTCPK:SFTBY) in 2016 for $32B.
