Arm jumps 6% in pre-market trade with valuation topping $72 billion

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Arm began trading on Thursday with shares in its blockbuster IPO priced at $51 each, valuing the company at about $54.5 billion.

jumped another 6% on Friday in U.S. pre-market trade, continuing its rally after its Nasdaq debut this week.

The British chip designer's shares were trading just over $67 around 6:10 a.m. ET, implying a valuation of more than $72 billion. Arm shares were even higher earlier but pared some of those gains.on its first day of trade on Thursday. Shares for its blockbuster IPO were originally priced at $51 each, valuing the company at about $54.5 billion., even as its faces headwinds to its growth. Some analysts have expressed concerns over the valuation.

"The pricing is expensive … I think a lot of investors are thinking on the sidelines … and waiting to see how they execute on those drivers," Ben Barringer, equity research analyst at Quilter Cheviot, told CNBC's "Squawk Box Europe." Softbank, which acquired Arm in 2016, floated about 10% of the company, with the Japanese giant holding on to 90% ownership.

Softbank has faced criticism about its investment strategy with its massive Vision Fund tech investment arm posting a

 

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