![]() ![]() ![]() The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. As a result, they expect more sizeable companies to launch IPOs in the quarters and months ahead. Multiple market participants have cited Arm’s successful IPO as a sign that the IPO market has been rejuvenated. Nvidia tried to purchase Arm for $66 billion, but regulators vetoed the deal. Softbank acquired Arm in exchange for $32 billion seven years ago. After a dizzying rally last week, shares of the electric vehicle (EV) charging stock crashed by double digits on Monday, and then continued to sink today. But with the chip designer’s top line poised to surge going forward, that multiple is likely to drop sharply.Īlso noteworthy is that Arm expects to benefit from the strong demand for chips for use in AI and data centers.Īrm believes that 70% of the world’s chips are based on its designs. ![]() The company’s net income, however, sank 22% last year.īased on a market capitalization of $54 billion, ARM would have a price-to-earnings multiple of 104.Arm expects its revenue to surge 11% in 2023 and about 25% in 2024. Shares that are the subject of investment through EquityZen are generally subject to a lock-up period of up to 180 days after the effectiveness of a companys.Several of Arm’s largest customers, including Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA), have agreed to buy significant amounts of ARM stock.The company’s fully diluted market capitalization is over $54 billion, CNBC reported.The majority of Arm is owned by Japanese investment bank Softbank (OTCMKTS: SFTBY).Arm received $4.87 billion from the transaction.The IPO was priced at $51 per share, towards the higher end of the $47-$51 range that it had previously anticipated.Here are seven other important things to know about Arm and ARM stock. The IPO gave ARM stock a valuation of over $50 billion, making it the largest U.S. Employees will be able to sell 15 of their shares immediately after the public debut, compared with the traditional six-month lock-up period. The shares of chip designer Arm Holdings (NASDAQ: ARM), which launched its initial public offering ( IPO) yesterday, start trading today. Robinhoods loose lock-up structure is also unorthodox. ![]()
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