News Update


Arm: Shares of the UK chip designer rise in market return

Shares of the company closed trade on Thursday at more than $63 each, up from $51 per share earned from the share sale.

The IPO was the largest of the year, raising $4.87 billion for owner Softbank Group.

The increase in the share price represents a vote of confidence in the company.

“Despite some concerns about the company’s exposure to numerous risks in China, a juggernaut of enthusiasm has not abated,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Arm, a British technology industry star, creates semiconductors for devices such as cellphones and game consoles. It says that 70% of the world’s population utilizes products based on its chips, including nearly all cellphones.

Rene Haas, the business’s CEO, stated that the company sees additional opportunities for growth as investments in artificial intelligence (AI) boost demand for its products.

“You can’t run AI without Arm,” he asserted. “We believe we’re just getting started.”

The return of Arm to the stock market had been widely anticipated. The firm, headquartered in Cambridge, had been heavily lobbied to list its shares in the UK.

However, in March, in a blow to the London stock exchange, Arm stated that it would proceed in the United States.

Mr. Haas, who is based in the United States, stated that the firm chose to list on the Nasdaq because of its experience handling significant share sales by technology firms. He told the BBC that the company was open to listing in London “down the road.”

Hermann Hauser, who worked on the first Arm processor, told the BBC’s Today programme that the UK’s decision to leave the European Union was partly to blame for the shares being listed in the US rather than the UK, as it had harmed the London Stock Exchange’s reputation.


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