SoftBank’s Arm soars 25% in market debut to US$65bil valuation

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The UK chip designer’s stock, closing at US$63.59, ignites hope for a revival in the stagnant IPO market.

ARM Holdings CEO Rene Haas rings the Nasdaq Opening Bell during the company’s IPO in New York’s Times Square.

“It is a successful IPO,” said Salman Malik, partner at Anson Funds in Toronto. “It will have a positive impact on the IPO pipeline and shows the AI theme is alive and kicking.” The Japanese investment giant took Arm private in 2016 for US$32 billion. It has been looking to cash out some of its stake since at least 2020, when it agreed to sell Arm to chipmaker Nvidia in a US$40 billion deal. It had to abandon that plan due to regulatory roadblocks.

“He is quite bullish on the company. The price today or even in the near term isn’t really his focus, the focus is where’s the price gonna be in the in the future.” The 10 biggest US IPOs of the past four years are down an average of 47% from the closing price on their first day of trading, the analysis of LSEG data as of Friday showed.

 

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