Chip designer Arm made a strong debut on the New York Stock Exchange (NYSE), marking the largest initial public offering (IPO) of 2023. The company's shares surged by 25% on their first day of trading, Thursday, and further advanced by 9% in Friday's premarket.
The IPO has attracted massive investor interest, with premarket trading volume for Arm exceeding 550,000 shares as of approximately 04:30 ET (08:30 GMT), according to Dow Jones Market Data. In comparison, the premarket trading volumes for Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL), two of the most actively traded stocks, stood around 50,000 and 30,000, respectively.
Arm's performance outshone broader market trends. While futures for the S&P 500 were up by a mere 0.1%, contracts tracking the tech-heavy Nasdaq declined by 0.1%.
The company's core business involves designing chips for various semiconductor manufacturers. Its processors are used in virtually every existing smartphone. The successful IPO not only signifies a significant milestone for Arm but also marks the largest listing in almost a year. This could potentially stimulate capital markets that have witnessed a slowdown in 2023.
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