Shares in chip designer Arm soar 25% in market debut

The news: Shares in chip designer Arm Holdings jumped almost 25% above their offer price in their Nasdaq debut in the biggest US initial public offering (IPO) this year.

The numbers: Arm shares opened at USD56.10 per American Depositary Share compared with the offer price of USD51, and closed at USD63.59, notching a gain of 24.68% in the company’s market value to USD65 billion ($101 billion). The IPO netted USD4.87 billion for SoftBank, which still holds a 90.6% stake.

The context: The IPO comes seven years after SoftBank took the British company private. Its first-day jump bodes well for companies waiting to list after the IPO market collapsed due to the war in Ukraine and interest rate hikes. High-profile names including grocery delivery service Instacart, German footwear maker Birkenstock, and marketing automation platform Klaviyo are preparing to go public in coming weeks.