SoftBank’s Arm jumps 18% in IPO debut to notch $65 billion valuation

Shares in SoftBank’s Arm Holdings (ARM) opened 18% above their IPO price in their Nasdaq debut on Thursday, valuing the chip designer at nearly $60 billion as it returned to public trading after seven years.

Arm Ltd. logo


The stock opened at $56.10 per American Depositary Share compared with the initial public offering (IPO) price of $51, and steadily extended gains to just over $60.

The first-day jump bodes well for companies that have been waiting to list after the IPO market collapsed due to the war in Ukraine and Federal Reserve interest rate hikes.

Arm secured a valuation of $54.5 billion on Wednesday after pricing its IPO at the top end of the marketed range, netting $4.87 billion for SoftBank, which still holds a 90.6% stake.

Despite a strong showing on Thursday, Arm’s debut marks a climb-down from the $64 billion it was valued at last month when SoftBank bought the 25% stake of Arm it did not directly own from its Vision Fund unit.

Arm is indispensable in the tech hardware ecosystem as its chip designs power nearly every smartphone in the world.

MacDailyNews Note: ARM closed out its debut Thursday up $12.59 (+24.69%) at $63.59 on The Nasdaq Stock Market. ARM’s market value currently stands at $65.243 billion.

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