September 14 proved to be an auspicious date for Arm, a chip design firm based in the United Kingdom, as it made an impressive debut on the tech-centric exchange Nasdaq in New York.
Trading under the ticker ARM, the company began its market stint with an initial public offering (IPO) of 95.5 million shares on Thursday afternoon.
Starting at $56 per share, over 10% above Arm’s initial price offering, the company closed the day at $63.59. That said, Arm finished its first trading day with its value up by 25% and its market capitalization within the neighborhood of $65 billion.
Global investment firm Goldman Sachs acted as Arm’s lead underwriter for its initial offering.
Go Big or Go Home
Arm’s initial foray into trading makes history as this year’s largest IPO and the biggest since 2021 which saw an equally strong debut for electric truck maker Rivian.
During an interview on the day of the IPO, Arm chief executive Rene Haas expressed his joy at the success of his firm’s market debut.
Haas added that, prior to deciding on doing the IPO, the firm’s bankers said that it would be a good thing for Arm if they could set their share price on the high end and go beyond it. For the British chip firm, it was sound advice that paid off bigtime.
Not Seen, But Felt
Most tech users in the United States and elsewhere are probably unaware of Arm’s existence, yet the company plays a vital role in their daily lives.
The company’s designs and technical instructions have been used by bigger tech players like Apple, Google, Nvidia, and Samsung to develop and produce chips that make their way into numerous devices from smartphones and GPS trackers to laptops and smart televisions.
Prior to Arm’s IPO, those same companies also expressed an interest to become cornerstone investors for the chip designer’s stock market debut.