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Arm surges 25% after $65 billion IPO valuation

written by Bella Palmer

Shares in Arm opened above the IPO price of $51 on the Nasdaq exchange, climbing to $56.10 in early trading

Arm Holdings, the semiconductor technology firm owned by Japanese giant SoftBank, made a strong return to the public markets on Thursday after an IPO that raised more than $5 billion for the firm while eventually valuing it at $65 billion.

Shares in Arm opened above the IPO price of $51 on the Nasdaq exchange, climbing to $56.10 in early trading. The steep rise extends a hot streak for Arm, which last month secured a pre-IPO valuation of $54.5 billion.

By close, the shares were priced at $63.59, nearly 25% climb over the IPO price. After-hours trading has pushed the price even higher since, presently at $64.70 per data from Yahoo Finance. Several media reports tied the much-expected IPO to recent market excitement over the future of AI.

The successful debut by Arm is welcome news for the IPO market after a pause caused by economic uncertainty.

An initial public offering marks a significant milestone for firms, permitting them to accumulate significant capital and pave the way for further growth and expansion. Arm’s initial public offering is now the biggest this year.

Arm's initial public offering not only underlines its dominant position in the semiconductor industry, but also highlights its key role in shaping the future of technology.

This is Arm’s second IPO. The chip designer is returning to the public markets after being taken private by SoftBank in 2016 for $32 billion. Arm licenses processor technology used in most of smartphones globally, giving it an unparalleled position in the semiconductor industry.

We are elated to welcome Arm back on Nasdaq, said Nasdaq Global Head of Listings Karen Snow in an official statement. As a firm that is constantly questioning how to shape a better tomorrow, Arm aligns perfectly with our mission.

The IPO comes after a failed acquisition bid by Nvidia in 2020, which was blocked on antitrust grounds. While Arm has ambitious plans to push its technology into new areas such as data centres and self-driving cars, the core smartphone market remains its main focus at present. Nvidia disclosed its interest in investing in Arm’s initial public offering.

Looking ahead, Arm intends to expand its reach by venturing into new markets and fostering innovations in AI and machine learning (ML) technologies. SoftBank CFO Yoshimitsu Goto said that Arm is "in the leading position of the artificial intelligence revolution that we have been strategically advancing."


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