Arm Holdings Makes Strong Nasdaq Debut
Shares in UK-based chip designer Arm Holdings have taken a flying leap as the company made its debut on Nasdaq. The stock started at $56.1 (£45.2) per share, a hearty 10% above the initial price of $51 (£41). Arm is mostly owned by Japan’s SoftBank Group, with a valuation of $54.5bn (£43.6bn) before Nasdaq. Now, it’s worth nearly $60bn (£48bn) after its Thursday trading debut. This initial public offering (IPO) is the biggest on Wall Street since Rivian in 2021.
Arm, headquartered in Cambridge and employing 2,800 staff, is a vital player in the tech world. Their processor designs power the majority of smartphones globally. Interestingly, Arm was listed in London until it went private seven years ago after a contentious takeover by SoftBank in 2016. This time, they chose New York over London, despite efforts from the UK government.
Kyle Rodda, a senior market analyst at Capital.com, called this IPO “the most hyped listing we’ve seen in a while.” While many companies have hesitated to go public due to a sluggish global economy, the tech sector has thrived. Arm’s revenues faced challenges because of slowing smartphone sales, which directly impact their royalties. However, Arm is setting its sights on the cloud computing market and the potential for big gains in artificial intelligence (AI).
Notably, major players like Nvidia, Apple, and Samsung eagerly snapped up shares in Arm’s IPO.