SoftBank-backed chip designer Arm soars after successful IPO despite warnings of China risks
The valuation is within a previous target range thought to have been dampened by details in Arm’s IPO prospectus, such as its China exposureThe results reflect investor confidence in the company in the short term, although long-term risks remain, analysts saySemiconductorsDylan ButtsPublished: 9:30pm, 15 Sep, 2023Why you can trust SCMP
British chip designer Arm Holdings has launched a successful US$5 billion initial public offering (IPO) in New York, as investors rushed to buy into the company despite its heavy exposure to heightened China-US tech tensions.
The IPO was the largest US public offering in almost two years, with shares in the SoftBank Group-owned company soaring almost 25 per cent above its debut price on the Nasdaq in trading on Thursday, valuing the company at around US$65 billion.
Shares continued to jump during after-market trading.
The valuation is within a previous target range that was dampened by some details in Arm’s IPO prospectus, such as its China exposure. It was also slightly above the US$64 billion valuation implied last month when SoftBank bought a 25 per cent interest in Arm from its investment vehicle SoftBank Vision Fund for US$16.1 billion.