There’s been a lot made out of the upcoming initial public offering (IPO) for Arm Holdings. Owned by SoftBank (OTHEROTC:SFTBY), Arm Holdings’ IPO is being met with plenty of interest, and that’s making SoftBank further consider just what price it can get for shares of Arm Holdings. Indeed, Arm might exceed the top end of its IPO range. Right now, the range in question is between $47 and $51 per share. If Arm is ultimately priced at the top of that range, that would put the company’s market value somewhere around $54 billion.
And that may not be the limit; reports also suggest that Arm’s ultimate price could kick off over $51 per share, depending on how many orders come in from investors. Meanwhile, SoftBank will be at the top of this heap by a wide margin, as it plans to hold on to 90.6% of Arm Holdings itself. That might really ramp up pricing interest and, in turn, the sheer cost of Arm stock once it finally goes live.
Furthermore, the order book for Arm Holdings shares closed a day early, which suggests strong demand. That also bodes well for the pricing aspect, and that’s further good news for SoftBank. SoftBank needed a win, particularly after the WeWork debacle that underscored late 2022 and carried on well into 2023’s first quarter. Better yet, SoftBank will clearly win out here over the previous possible plan to sell Arm to Nvidia (NASDAQ:NVDA), which would have landed SoftBank $40 billion.
A look at the last five days in trading for SoftBank stock reveals that its course wasn’t the greatest until earlier today. SoftBank spent most of the last five days in decline until a sudden gain late last week gave it a short-lived rally. Today, however, share prices went vertical and are now holding at their newly-elevated level.
