This is the biggest initial public offering since 2021.
The UK-based chip designer Arm made a triumphant Nasdaq debut on Thursday, ending the day 25% higher and giving the business a market worth of over $65 billion after nearly two years without an IPO.
The company began trading in New York on Thursday afternoon with 95.5 million shares trading under the ticker ‘ARM’ (ARM). Trading started at $56 per share, which was already 10% more than the offering price, and ended at $63.59.
The robust opening represents the biggest initial public offering of the year and the biggest since Rivian, a manufacturer of electric trucks, in 2021.
Investors rejoiced at the news, and the Dow rose more than 330 points on Thursday, recording its highest day since August.
About 90% of the shares of Arm will remain in the hands of SoftBank, which purchased the company in 2016 for $32 billion.
Though most Americans probably haven’t heard of Arm, they frequently utilize the company’s goods. Arm’s designs and instructions are used by Apple (AAPL), Samsung, Nvidia (NVDA), and Google to make their chips. The company is crucial to the creation of GPS devices, smartphones, laptops, video games, and televisions.
According to a document from last week, businesses like Apple, Google, Nvidia, AMD, Samsung, and TSMC have expressed interest in serving as cornerstone investors in the offering.
“We’re very happy about today,” Arm CEO Rene Haas told CNN’s Richard Quest on Thursday afternoon. “It’s a great day for the company…Our bankers say if you can price at the high end of the range and go out of that number, it’s a good thing. That’s where we ended up and we couldn’t be more pleased.”