On September 14, SoftBank's Arm Holdings experienced an impressive nearly 25% increase in its stock price compared to its initial Nasdaq debut.
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This surge brought renewed optimism among investors, indicating potential improvements in the somewhat stagnant market for initial public offerings (IPO).
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Initially opening at $56.10, the stock concluded the day at $63.59, reflecting a substantial gain of 24.68%.
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Consequently, this development elevated the valuation of the British chip designer, Arm, to $65 billion, marking its return to public markets after an absence of seven years.
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It is noteworthy that the IPO was initially priced at $51.
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Arm's robust showing suggests that there may be a renewed investor appetite for initial public offerings (IPOs),
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which had faced challenges in the past two years due to geopolitical tensions and rising interest rates, according to experts in the market.
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Salman Malik, a partner at Anson Funds in Toronto, commented, "This IPO has been successful and is likely to have a positive impact on the pipeline of upcoming IPOs.
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It also highlights the ongoing popularity of the artificial intelligence theme."
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"Whenever Nasdaq adds a new company to its listing, it can generate revenue not only from the listing itself but also from the additional services it offers to these listed companies on their exchange."