BackSoftBank’s Arm lists at $56.10 apiece in a stellar Nasdaq debut; surges nearly 25% to $65 billion valuation
Arm share price surged 24.68% to close at $63.59 on the first day of the trading, giving the British chip designer a valuation of $65 billion.
PremiumSoftBank’s Arm Holdings made a decent debut on the Nasdaq Thursday. Chip designer Arm's American Depositary Shares opened at $56.10 apiece compared with the initial public offering price of $51.
After the stellar listing, Arm share price surged 24.68% to close at $63.59 on the first day of the trading, giving the British chip designer a valuation of $65 billion in its return to public markets following a seven-year absence, Reuters reported.
Arm secured a valuation of $54.5 billion on Wednesday after pricing its IPO at the top end of the marketed range, netting $4.87 billion for SoftBank, which still holds a 90.6% stake.
Despite a strong showing on Thursday, Arm's debut marks a climb-down from the $64 billion it was valued at last month when SoftBank bought the 25% stake of Arm it did not directly own from its Vision Fund unit, Reuters reported.
Arm’s strong performance suggests that investor demand for initial public offerings, which had been hit hard over the last two years by geopolitical tensions and higher interest rates, may be on the rebound, market participants said.
Several companies, including grocery delivery service Instacart, German footwear maker Birkenstock, and marketing automation platform Klaviyo are scheduled to go public in coming weeks, Reuters reported.
Arm is indispensable in the tech hardware ecosystem as its chip designs power nearly every smartphone in the world. It disclosed last month that its annual revenue had dropped 1% as its two largest markets - smartphones and personal computers - slumped.
(With inputs from Reuters)
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