Shares of UK semiconductor architect and tech darling Arm Holdings closed their first day of trading nearly 25% higher after the company relisted on Nasdaq following a seven-year sabbatical.
Arm’s parent SoftBank offered 9.4% of its stake in the Cambridge-headquartered group at $51 a share, equating to a valuation of more than $54 billion. When the closing bell rang, the stock had jumped to $63.59.
Much speculation has surrounded Arm’s true value to the public markets, particularly given how SoftBank steadily recalibrated its expectations in the months preceding the IPO.
Initially tipped for a $70 billion IPO, SoftBank ended on a $54.5 billion valuation, which has nonetheless netted the Japanese conglomerate multiple billions of dollars in proceeds.
Volatility is to be expected in the days following what has become the largest US IPO since Rivian went public in November 2021.
Arm’s senior executives were seen celebrating after ringing the opening bell this morning, with staff in Cambridge, England joining in.
Arm crew celebrates in Cambridge – Credit: Nasdaq
“We are elated to welcome Arm back on Nasdaq,” said Karen Snow, Nasdaq’s global head of listings. “As a company that is constantly questioning how to forge a better tomorrow, Arm aligns perfectly with our mission, and we could not be more excited to see what Arm has on the horizon.”
Arm’s performance is being closely watched by Wall Street, with hopes of a recovery in tech IPOs being pinned on the flotation.