Arm Goes Public for $54.5 Billion: Should You Buy Into the Largest IPO Since 2021?

investing.com:

In the biggest IPO since 2021, Arm Holdings (NASDAQ:ARM), the renowned chip design firm, will start trading on the Nasdaq today for $51 per share — which prices the company at a hefty $54.5 billion market cap.

Arm, an acronym for Advanced RISC Machines, is a British semiconductor and software design enterprise headquartered in Cambridge, England. The company primarily focuses on designing the ARM architecture family of central processing units (CPUs).

Additionally, Arm designs various other semiconductor chips, offers software development tools through brands like DS-5, RealView, and Keil, and delivers comprehensive systems, platforms, system-on-a-chip (SoC) infrastructure, and software solutions.

Arm is a vital player in the technology industry, supplying core technology to major companies such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).

Majorly owned by Japan-based Softbank (OTC:SFTBY), the company has garnished the trust of industry giants like Apple, Google (NASDAQ:GOOGL), Nvidia, Samsung (KS:005930), Intel (NASDAQ:INTC), and Taiwan Semiconductor Manufacturing (NYSE:TSM), which all have already manifested interest in buying into the offering.

ARM’s current valuation comes seven years after SoftBank took it private for $32 billion, and it represents a decrease from the previous evaluation of $64 billion, which SoftBank (TYO:9984) used to purchase the remaining 25% stake in the company from Vision Fund just last month.

However, the offering price of $51 per share was set at the top end of the expected range between $47 and $51 per share and is expected to generate $4.87 billion for SoftBank through the sale of 95.5 million shares, which represents 9.4% of the company’s stock. After the IPO, the Japanese