Arm Holdings stepped out in style in its Nasdaq debut as it closed its first day of trading at nearly 25% higher, earning the company a market valuation of $65bn. Starting its big launch at already 10% more than its initial public offering (IPO) with a $56 per share price, Arm ended its first day in the public arena at $63.59 per share.
Arm IPO splash largest in two years
This IPO is not only the largest of the year but also the largest in the past two years. Since the Rivian IPO, nothing has made a market splash like Arm since 2021. Palpable excitement among investors boosted the Dow Jones by more than 330 points.
Softbank, Arm’s parent company, acquired the chip maker for $32bn in 2016, and retains a 90% controlling share, leaving only a 10% slice that went public. As investors vied to scoop a piece of this cut, Arm saw its value soar.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
According to financial reports, tech giants such as Apple, Google, Nvidia, and Samsung confirmed their interest in being core investors in Arm. The company’s chips are commonly found in consumer electronics such as smartphones, laptops, televisions, and gaming consoles.
Analysts believe this successful IPO paves a smoother road for tech companies that have yet to go public this year. It also spotlights the rush for chips underpinning artificial intelligence (AI) and the global rush by manufacturers to get their hands on the tech to make it possible.
