The share rises sharply – E24

It is the biggest stock market debut in two years. Investors are warmly welcoming Arm’s stake on Wall Street.

Computer chip company ARM’s stock is trading at $61.1 on the Nasdaq Stock Exchange, an increase of more than 20 percent. List priceList priceThe price at which a company sold its shares in connection with its listing on the stock market.

There has been excitement surrounding the British company’s IPO, as it is seen as a tough test for the currently tough IPO market.

A warm welcome from investors could encourage more companies to go public and put an end to the period of weakness for IPOs.

At the same time, the big jump in prices on the first day of trading may be disappointing for main owner SoftBank, as it indicates that the Japanese giant could have raised more money in connection with its stock market listing.

The biggest in two years

Arm was priced at $54 billion before its IPO. This amount is equivalent to 581 billion Norwegian kroner at today’s exchange rate.

Now the market value has risen sharply.

Director Jan-Peter Sisner notes that the listing price of $51 was in the upper range of what the computer chip company had previously indicated was $47 to $51 per share.

– They were placed at the top of the “rank” and many were deleted. Among other contributing factors, Cisner responded in a short text message to E24 to questions about the reason behind the high prices.

There was strong interest in the IPO, so not all interested investors were able to purchase shares in the capital raising.

The company’s value is about $4.9 billion, with 95.5 million shares sold at $51 each.

This is the largest stock market debut since Rivian, which makes electric trucks, went public in 2021.

Arm designs the data chips that, according to Bloomberg, are used in nearly all of the world’s smartphones.

SoftBank will remain the majority owner, and according to the plan, it will own about 90 percent of the shares. The Japanese giant bought Arm for $32 billion in 2016 and delisted the company from the London Stock Exchange.

An army of banks

Many of the company’s most important clients, including heavyweights such as Apple, Nvidia, Google, Samsung and TSMC, have indicated they will buy shares in connection with the listing.

In an interview with CNBC On Thursday, Softbank CEO Masayoshi Son emphasized how Arm’s technology will be used in AI chips, in an attempt to link the company to the ongoing AI boom.

According to the report, brokers from 28 banks helped sell Arm’s IPO Financial Times.

Arm’s listing on the stock market is a victory for the Nasdaq over its rival, the New York Stock Exchange. The rivalry between New York’s two most important stock exchanges goes back several decades. In the hunt for the biggest IPOs, stock exchanges promise announcement time and hold lavish IPO parties at their offices, writes The Wall Street Journal.