Arm soars nearly 25% in market debut to $65 billion valuation

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Shares in SoftBank's Arm Holdings soared almost 25% above their offer price in their Nasdaq debut on Thursday, valuing the British chip designer at $65 billion in its return to the public markets after seven years.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

15 Sep 2023

The stock opened at $56.10 per American Depositary Share compared with the initial public offering (IPO) price of $51, and closed at $63.59, notching a gain of 24.68%.

The first-day jump bodes well for companies that have been waiting to list after the IPO market collapsed due to the war in Ukraine and Federal Reserve interest rate hikes.

«This pop can get people more excited about the IPO market for the rest of this year and going into 2024,» said Owen Lau, senior analyst at Oppenheimer & Co.

High-profile names including grocery delivery service Instacart, German footwear maker Birkenstock, and marketing automation platform Klaviyo are preparing to go public in coming weeks. If those IPOs succeed, they will likely trigger a wave of stock market launches in 2024, bankers and analysts said.

«The Arm IPO is the most hyped listing we've