Shares of SoftBank's Arm Holdings rose about 25 percent above their Nasdaq Listing price on Thursday. Shares of the chip design company American Depository opened at $56.10 per share, compared with the debut price of $51 per share.
After the robust debut, SoftBank Arm's share price rose 24.68 percent to $63.59 per share on the first day of trading, taking the British chip designer's valuation to $65 billion as it returned to the stock market. public markets after a seven-year absence, according to a Reuters report.
The company gained a valuation of $54.5 billion on Wednesday after pricing its initial public offering at the high end of the marketed range, raising $4.87 billion for SoftBank, which still owns 90.6 percent of the stake.
According to a Reuters report, despite Thursday's strong performance, Arm Holdings' debut marks a drop from the $64 billion it was valued at last month when SoftBank bought the 25% stake in Arm that did not directly own its Vision Fund unit.
Market participants said Arm's strong performance shows that investor demand for IPOs, which has been low over the past two years due to geopolitical tensions and higher interest rates, may be on the way to the recuperation.
Several big companies, including shoe maker Birkenstock, grocery delivery service Instacart and marketing automation service Klaviyo, are scheduled to go public in the coming weeks.
Arm's chip designs power nearly every smartphone in the world, making them indispensable in the tech hardware ecosystem. Last month, the company reported a 1 percent decline in annual revenue as its two largest markets, smartphones and personal computers, saw a slowdown.
