Arm, based in Cambridge, UK, was listed on the stock exchange from 1998 to 2016.
(Photo: Reuters)
new York It was a textbook IPO. The shares of the British chip designer Arm start trading on Thursday at a price of $56.10. That is an increase of ten percent from the issue price.
This means that the stock’s much-noticed jump in price is neither too high nor too low, as investors say: If the share price only rises very slightly, this is often seen as a sign of weakness on Wall Street. On the other hand, if the price jump is too large, it is a sign that the issue price was too low and the company could have made more money by going public.
The IPO on the US technology exchange Nasdaq is the world’s largest this year and is being closely followed by investors, bankers and entrepreneurs. A solid start to the stock market could also encourage other companies to go public after a long period of doldrums.
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