The share price of chip design company Arm Holdings rose to $58 on its first day of trading on Thursday, after its initial public offering (IPO) price of $51 was at the high end of the recommended range.According to aggregate data, the IPO raised US$4.87 billion, making it the largest IPO by a U.S. exchange since Rivian’s US$13.7 billion IPO in November 2021.
The ArmADR recommendation range is US$47-51, and is sold by banks such as Barclays, Goldman Sachs, JPMorgan Chase, Mizuho, Bank of America, Citigroup, Deutsche Bank, Jefferies, BNP Paribas, Credit Agricole, Natixis, Mitsubishi UFJ and other banks
According to people familiar with the matter, the IPO was 12 times oversubscribed. Of the 95.5 million American depositary shares issued, the top ten customers subscribed for half of them at a price of US$51 per share.
Note: On September 13, SoftBank’s chip design company Arm raised US$4.87 billion in the largest IPO of the year.