Arm Holdings IPO; stock price today on Nasdaq; update

Update Thursday, 7:30 a.m. ET

All eyes will be on Arm Holding shares today as they begin trading on the Nasdaq in the British chip designer’s highly anticipated IPO. The SoftBank-owned company priced shares at $51 on Wednesday, the higher end of its expected range.

Analysts will be watching the stock’s movements closely, as whatever happens could indicate how much investor interest there will be in future tech IPOs this year, including Instacart, which is expected to go public next week. Some analysts have expressed concern that Arm is overpriced. Only time will tell.

Update Wednesday, 7 p.m. ET

Arm Holdings priced its shares at $51, the higher end of its expected range, the company said in a press release Wednesday. The SoftBank-owned British chip designer expects to begin trading on the Nasdaq Thursday in what will be one of the most highly anticipated initial public offerings of the last few years.

Original story:

Chip designer Arm Holdings is primed to go public this week in one of the most anticipated IPOs of the year, largely due to the increased appetite for stocks in and around the AI space. The British company’s chips can be found in millions of smartphones, computers, even cars. As such, investors have been keeping a close eye on when Arm’s stock will be listed, as it’s believed there’s potential for big returns in the months and years ahead.

Last week, Arm updated its filings to the Securities and Exchange Commission (SEC), and it’s expected that shares could start trading as soon as Thursday. The company’s updated F-1 showed that Arm was looking at a valuation of up to $52 billion and plans to list 95.5 million shares, priced between $47 and $51. Reporting from Reuters, however, indicates that the company’s IPO is oversubscribed and is on track to reach a higher valuation—$54.5 billion. More precise share pricing information should become available sometime on Wednesday.

At a $54.4 billion valuation, however, some analysts are signaling that the company could be overpriced. One analyst from Morningstar, for example, said that its valuation makes shares “very, very expensive,” and that “everything would have to go beyond perfect for them to be able to justify that $50 billion valuation.”

For reference, the company reported revenue of $2.68 billion during its last fiscal year, which ended on March 31, according to data from SoftBank, the Japanese holding company that currently owns it. 

It’s also worth noting that Arm has several big-name companies participating in its IPO as investors—a list that includes Apple, Alphabet, AMD, Intel, Samsung, and Nvidia. 

Meanwhile, for retail investors who are waiting for their chance to buy shares, the Wall Street Journal reports that investors can expect more details from Arm and its IPO underwriters on Wednesday, as the company wraps up its investor roadshow. If all goes as planned, the stock should start trading on the Nasdaq Thursday under the “ARM” ticker. 

Disclosure: Fast Company is owned by Morningstar founder Joe Mansueto.