Arm Holdings Ltd.("Arm") initial public offering (IPO) has been 10 times oversubscribed。Given the popularity of subscriptions, it is expected to stop accepting orders before Tuesday afternoon (September 12) local time.。

It's not uncommon for IPOs to close early, suggesting that demand for the stock is strong。While Arm closes orders a day early, it still plans to price its shares this Wednesday (September 13) and could hit the upper end of the initial range of $47 to $51 per share, or even higher.。

If it reaches the upper end of its originally projected range, the IPO will raise $4.9 billion for Arm's parent company, SoftBank, and value the company at $54.5 billion on a fully diluted basis.。

SoftBank Group's shares rose 1 percent today on the news.97%, third straight day of gains。The stock has risen about 20% since the start of the year。

The offering could end up being up to 15 times oversubscribed by Wednesday, people familiar with the matter added。However, it also warned that everything has not yet been finalized and IPO orders could change at any time.。

Earlier, reports said Arm plans to seek a $60 billion to $70 billion valuation.。Before launching the IPO, SoftBank bought Arm shares held by the Vision Fund at a valuation of about $64 billion.。A successful IPO of Arm would be a windfall for SoftBank founder Masayoshi Son, whose Vision Fund lost a record $30 billion last year.。However, it is worth noting that SoftBank will control about 90% of Arm's shares after the IPO, which will result in limited market free float and greater volatility in the stock.。

The Arm is so hot, mainly affected by the AI wave。

Arm is a key component of the chip supply chain, and its designed semiconductors are widely used in most smartphones around the world。In a filing with the Securities and Exchange Commission, the company said: "We estimate that approximately 70% of the world's population uses Arm-based products.。Last year, chips containing its technology accounted for 49% of the potential market (worth more than $200 billion).。

In addition, Arm's technology has a market share in cloud computing.。In the last fiscal year, more than 260 companies, including Amazon, Alphabet, Qualcomm and AMD, were using Arm-based chips.。The company has worked with its top ten customers (as measured by royalty revenue) for an average of more than 20 years.。

In addition, Arm CEO Rene Haas recently revealed that the company is transforming to attract more investors.。

Haas said that Arm is engaged in complex design work for specific products, tailored for specific products, and this will be Arm's next key growth area。According to Haas, this is a "specially designed method" that can meet the urgent needs of mobile devices, cloud computing, automotive electronics and Internet connection technology manufacturing companies.。

Haas's move is intended to reverse the focus of Arm's development, from the pursuit of "quantity" to the pursuit of "precision."。He pushed Arm to go beyond licensing the basic building blocks of the chip to provide customers with blueprints that can be taken directly to the factory and put into production.。Arm now charges higher royalties per device as it offers customers a more complete and technically capable design.。

Arm's transformation is actually traceable。Today, some tech giants are starting to see the ability to manufacture the basic components of their products and systems as a key competitive advantage.。Apple, Amazon, Google, Microsoft and others are trying to equip data centers with chips that suit their specific needs, rather than relying on Intel to provide a common solution。This situation provides Arm with a new "blue ocean" of chip design.。

While Arm may get lower revenue on the smartphone main chip, its potential in the processor of the cloud data center core is much greater。In this environment, the chip can have more than a hundred computing cores or mini-processors, and Arm can charge a fee for each core processor。

Jason Childs, Arm's chief financial officer, said that by 2025, Arm's cloud computing revenue will likely grow to $28 billion, which means that it will grow at a rate of 17% per year from now on.。And when the chip business changes, Arm is likely to invest more in research and development to seize the opportunity。Childs says profitability increases when related businesses are more stable。

Arm said, "We believe that our investment in higher performance, higher efficiency and more professional design will drive greater demand for our products and bring higher value to our customers, which is expected to lead to higher Royalties。"