SoftBank’s Arm jumps 10pc in market debut

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The chip designer saw its valuation rise to near $93 billion in its return to the public markets after seven years.

| Shares of SoftBank’s Arm Holdings opened 10 per cent above their offer price in their Nasdaq debut on Thursday, giving the chip designer a valuation of nearly $US60 billion in its return to the public markets after seven years.

Arm had secured a valuation of $US54.5 billion on Wednesday after pricing its IPO at the top end of the marketed range. It fetched $US4.87 billion for SoftBank, which still holds a 90.6 per cent stake. Since then it has pivoted towards an IPO, though that also came with its own hurdles, including run-ins with the British government that was campaigning for a London listing for the chip designer.

Arm disclosed last month its annual revenue had dropped 1 per cent but was hoping to increase it at a time when its two largest markets - smartphones and personal computers - are in a slump.

 

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