On Wednesday, Arm Holdings (ARM) announced its initial public offering (IPO) price at $51 per share, a figure higher than the previously anticipated range of $47 to $51. This update was reported by the Wall Street Journal and subsequently discussed on Yahoo Finance Live by hosts Akiko Fujita and Seana Smith.
Originally, the Wall Street Journal had reported the IPO price at $52 per share. However, this information has since been corrected to $51 per share. At the initially reported price of $52, Arm Holdings would have been valued at approximately $55 billion. This valuation is lower than the most recent one from its majority stakeholder, SoftBank (SFTBY (OTC:SFTBY), TYO:9984.T).
The hosts on Yahoo Finance Live highlighted that a successful market debut for Arm could potentially stimulate the broader IPO market, particularly for tech companies. Additionally, the performance of Arm's shares could significantly impact SoftBank due to its substantial stake in the company.
SoftBank is reportedly aiming to raise roughly $5 billion from this IPO. However, with SoftBank retaining 90% of the shares and only around 10% being traded, there is speculation about potential volatility in initial trading.
The hosts also noted that a strong showing from Arm could open up the pipeline for other tech companies looking to enter the market. The performance of Arm's shares in their market debut is eagerly awaited and is expected to take place tomorrow on the NASDAQ.
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