(Bloomberg) — Arm Holdings Ltd. is considering raising the price range of its initial public offering after meeting with investors for what would be the world’s largest listing this year, according to people familiar with the matter.
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On the SoftBank Group Corp. chip designer’s stock sale. has been enrolled about six times, said the people, who asked not to be identified because the information is private. Deliberations are ongoing and no final decision has been made, the people said.
Arm filed for an initial public offering at $47 to $51 per share, which would have valued the company at $54.5 billion at the high end of the range. That was slightly less than the $60 billion to $70 billion valuation the company had targeted earlier this year.
It’s common for companies going public and their investment bankers to try to create positive momentum as they move toward final pricing of an initial public offering, expected Wednesday for Arm. The shares will start trading the next day.
Reuters previously reported that Arm is discussing the possibility of increasing the price range and that the offering could price at the top of the range or even above. A representative for Arm declined to comment.
Shares of SoftBank rose as much as 2.6% and are up about 15% so far this year.
Arm has sought to raise as much as $4.87 billion by offering 95.5 million U.S. shares in a range of $47 to $51. Any price increase is a sign that there has been strong demand for its shares during the roadshow.
Arm said during its investor roadshow that it expects revenue growth of 11% in the current fiscal year and mid-20% growth in fiscal 2025, boosted by demand for data center chips and artificial intelligence, Bloomberg previously reported.
At an investor luncheon in New York, Arm CEO Rene Haas said price increases have given the company a “greater upside than historically,” according to investors who attended the event. The investors said Haas expects robust growth to continue into fiscal 2026, with revenue increasing at a high rate of ten.
(Updates with Arm’s previous valuation target in third paragraph)
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