Shares of British Chip Designer Arm Jump Close to 25% in First Day of Trading

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published September 14, 2023
Arm Holdings CEO Rene Haas rings the Nasdaq opening bell at the Nasdaq

Michael M. Santiago / Staff / Getty Images

Key Takeaways

  • Arm Holdings American depositary shares jumped close to 25% in their first day of trading.
  • The British chip design firm's debut was the biggest IPO since October 2021.
  • CEO Rene Haas said going public will boost the company's ability to invest in AI technologies.

American depositary shares (ADSs) of Arm Holdings (ARM) jumped close to 25% on their first day of trading on the Nasdaq on Thursday, after the biggest IPO since October 2021.

The British chip design firm owned by Japan’s SoftBank offered 95.5 million ADSs at $51 each in the IPO, at the high end of its estimated price of $47 to $51 per ADS. That valued the company at $54.5 billion, in the largest IPO since electric vehicle maker Rivian Automotive’s (RIVN) $13.7 billion offering in October 2021.

As of the close of trading on Thursday, Arm shares were worth $63.59, lifting Arm's market capitalization over $65 billion.

Some of those that lined up to invest in Arm were among its biggest customers, including Apple (AAPL), Intel (INTC), Nvidia (NVDA), Samsung Electronics and TSMC (TSM). 

CEO Rene Haas touted the company’s strength in the booming artificial intelligence (AI) sector. He noted that 70% of the world’s population relies on Arm technology, “putting us in a unique position to advance AI across all devices.” Haas added that by going public, Arm is in a better position to strengthen its team and invest in more AI technologies.

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Article Sources
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  1. Arm. "Arm Announces Pricing of Initial Public Offering."

  2. AP. “Arm Holdings shares rise 10% in biggest initial public offering since late 2021.”

  3. U.S. Securities and Exchange Commission. “Form F-1 REGISTRATION STATEMENT.”

  4. Arm. “Together, we are building the future of computing, on Arm.”

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