Arm Holdings, the semiconductor designer owned by SoftBank Group, rose 19.98% in its first day as a public company.
Shares of Arm kicked off at $56.10 on the Nasdaq, up $5.10 from its IPO price of $51. The stock recently changed hands in mid-day trading at $61.19, a gain of $10.19.
The solid opening bodes well for Arm, which delivered the year's biggest IPO when it raised $4.87 billion. Arm sold 95.5 million American depositary shares at $51, the top of its $47 to $51 price range. Each ADS represented one share. At $61.19 a share, Arm is valued at nearly $63 billion.
Twenty-seven banks are listed as working on the Arm IPO. Barclays, Goldman Sachs, J.P. Morgan and Mizuho are the lead banks on the offering. Goldman is also lead book runner on the Instacart and Klaviyo IPOs which are scheduled to trade next week.
Arm designs the CPUs, or chips, that power more than 99% of the world’s smartphones, according to its regulatory filing. It is majority owned by SoftBank Group, which will have 90% of Arm after the offering.
A solid first day from Arm could help reopen the IPO market which has been largely dormant since 2021. Arm was expected to raise between $8 billion to $10 billion but instead the deal came in at $4.87 billion. This makes it the largest IPO since Rivian, the EV maker that collected nearly $12 billion in November 2021. Rivian initially traded well, delivering a great debut when its stock rose 29% from its $78 offer price. Rivian didn't retain those gains. The stock managed to stay above $78 for several weeks before it dropped below its IPO price in January 2022. Rivian shares this year have remained below $78, hitting a low of $11.68 in April. On Thursday, Rivian stock rose nearly 2% to $23.71 in morning trading.
