Arm Holdings' debut on Nasdaq draws massive retail interest

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Arm Holdings' debut on Nasdaq draws massive retail interest
Credit: © Reuters.

Chip designer Arm Holdings Plc, a subsidiary of Japan's SoftBank (TYO: 9984 ) Group Corp., made a successful debut on the Nasdaq MarketSite on Thursday, September 14, 2023. The company's shares opened at $56.10, a significant increase from its initial public offering (IPO) price of $51 per share, and closed at $63.59, marking a 25% surge from the IPO price.

The initial public offering attracted significant attention from retail traders. On its first day of trading, Arm Holdings garnered the most buy orders on Fidelity's trading platform with over 20,000 purchase orders, outpacing demand for retail favorites like Tesla (NASDAQ: TSLA ) Inc. and Nvidia Corp . (NASDAQ: NVDA )

The IPO, which was the largest of the year, valued Arm Holdings at $54.5 billion, making it the biggest since Rivian (NASDAQ: RIVN )'s $13.7 billion IPO in November 2021. The company sold 95.5 million American depositary shares (ADSs) at $51 each, raising $4.87 billion.

The SoftBank Group retained a 90% stake in Arm Holdings after the IPO and only sold 10% of its position to investors. In an interview with CNBC, Masayoshi Son, founder of SoftBank, revealed his intention to maintain as much stake in Arm Holdings as possible for as long as possible.

Arm's CEO Rene Haas expressed optimism about the company's future trajectory during an interview with CNBC. He noted that more than 70% of the global population uses Arm-based devices and anticipated exciting developments for the company over the next five to ten years.

The success of Arm's IPO is expected to pave the way for more tech companies planning to go public in the near future. This includes online grocery-delivery firm Instacart Inc., marketing and data automation provider Klaviyo Inc., Vietnam-based internet startup VNG Ltd., and footwear maker Birkenstock Holding Ltd., among others.

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