In the largest initial public offering (IPO) in nearly two years, shares of UK chip designer Arm Holdings experienced a significant surge, rising by almost 25% in their stock market debut, Damian Troise and Yuri Kageyama reported for the Associated Press (AP).
Arm Holdings' shares opened at $56.10 on the Nasdaq after being priced at $51, and they closed at $63.59. I Photo: Arm Facebook
The IPO marked a substantial milestone for both the company and the IPO market as a whole, which had seen relatively few companies go public over the past two years.
Arm Holdings' shares opened at $56.10 on the Nasdaq after being priced at $51, and they closed at $63.59. This performance resulted in Arm Holdings achieving a market value of $68 billion.
While many consumers may not be familiar with the company itself, they likely use products that contain Arm's chips. Arm's chip designs are utilized in nearly all smartphones, a majority of tablets, and digital TVs.
In recent years, the company has also expanded into areas such as artificial intelligence, smart devices, cloud computing, the metaverse, and autonomous driving.
This IPO holds significance not only for Arm Holdings but also for Softbank, the Japanese technology investor that acquired Arm in 2016, and for investment banks like Goldman Sachs, which has seen reduced revenue from underwriting and advisory fees.
Softbank will maintain a nearly 90% stake in Arm Holdings. This IPO is considered the largest since the electric truck maker Rivian went public in November 2021.