Arm designs chips for tech companies like Nvidia, Alphabet, and Apple, and generates revenue through licensing and royalty fees. The company was previously publicly traded but went private in 2016 after SoftBank acquired it for $32 billion. SoftBank still holds a 90% stake in the firm. The listing of Arm revives a slumping IPO market, which had its quietest year in over a decade after 2021's record deluge.
Key takeaways:
- British chip designer Arm went public on Thursday, with its shares surging 10% almost immediately after its initial public offering.
- The company's shares hit $56 within minutes of trading opening, and soared to $60 within 15 minutes, a 17% gain.
- Arm, which designs chips for tech companies like Nvidia, Alphabet, and Apple, opened at a $54.5 billion valuation, which quickly jumped to over $60 billion.
- The company's listing revives a slumping IPO market, which had its quietest year in over a decade after 2021's record deluge.