American depositary shares (ADSs) of Arm Holdings (ARM) jumped close to 25% on their first day of trading on the Nasdaq on Thursday, after the biggest IPO since October 2021.
The British chip design firm owned by Japan’s SoftBank offered 95.5 million ADSs at $51 each in the IPO, at the high end of its estimated price of $47 to $51 per ADS.1 That valued the company at $54.5 billion, in the largest IPO since electric vehicle maker Rivian Automotive’s (RIVN) $13.7 billion offering in October 2021.2
As of the close of trading on Thursday, Arm shares were worth $63.59, lifting Arm's market capitalization over $65 billion.
Some of those that lined up to invest in Arm were among its biggest customers, including Apple (AAPL), Intel (INTC), Nvidia (NVDA), Samsung Electronics and TSMC (TSM).
U.S. Securities and Exchange Commission. “Form F-1 REGISTRATION STATEMENT.”
CEO Rene Haas touted the company’s strength in the booming artificial intelligence (AI) sector. He noted that 70% of the world’s population relies on Arm technology, “putting us in a unique position to advance AI across all devices.” Haas added that by going public, Arm is in a better position to strengthen its team and invest in more AI technologies.4
Originally published on Investopedia.com
