# UK Chip Designer Arm Debuts on Nasdaq in Largest Public Offering Since 2021
New York – UK-based chip designer Arm has made its Nasdaq debut, marking the most significant initial public offering (IPO) since 2021. The company, which commenced trading on Thursday, saw its shares trading at approximately $56 each, 10% above its initial offering price. This shift in trading price has rocketed the company’s market cap to nearly $60 billion.
As the trading day progressed, Arm’s shares continued to rise, with an impressive 16% increase recorded in afternoon trading.
# The End of an IPO Drought
The launch of Arm’s shares on the Nasdaq ends an almost two-year IPO drought. Arm, renowned for its AI technology, began trading in New York on Thursday afternoon, launching 95.5 million shares under the ticker ‘ARM’ ([ARM](https://www.cnn.com/markets/stocks/Arm)). The successful debut marks the largest IPO this year and the most significant since electric truck manufacturer Rivian’s offering in 2021.
SoftBank, which acquired Arm in 2016 for $32 billion, will retain approximately 90% of the company’s shares.
# Arm’s Influence on Daily Tech
Though Arm might not be a household name in America, the company’s products are a mainstay in the tech industry. Tech giants like Apple ([AAPL](https://www.cnn.com/markets/stocks/AAPL)), Samsung, Nvidia ([NVDA](https://www.cnn.com/markets/stocks/NVDA)), and Google utilize Arm’s designs and instructions to create their chips. The company is a vital player in the production of smartphones, laptops, video games, televisions, and GPS units.
# A Weather Balloon for Tech IPOs
Wall Street views Arm’s successful debut as a positive sign for other tech companies waiting to go public. Dealmaking activity has plummeted to its lowest level in over a decade due to recessionary fears and high interest rates, which have led to shrinking valuations.
Goldman Sachs ([GS](https://money.cnn.com/quote/quote.html?symb=GS&source=story_quote_link)) reported earlier this summer a 20% decline in its investment banking revenue during the second quarter of 2023. Overall, the bank’s profit in the quarter dropped by 58% from a year ago, to $1.2 billion.
# A Positive Market Sentiment
Experts believe that a successful debut by Arm could open the floodgates for other tech companies waiting to make their public debut.
“This is a big deal,” said Dave Sekera, chief US market strategist at Morningstar Research Services. “The big takeaway here for investors, even in the public markets, is that if this IPO is successful, that opens up the floodgates for a wave of new IPOs. That would provide a positive market sentiment for the overall stock market.”
Goldman Sachs is the lead underwriter in the IPO. The bank’s shares were up by about 2.6% on Thursday.
This story is still developing and will be updated accordingly.
Original Story at www.cnn.com – 2023-09-14 18:46:00
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