The US is gearing up for its biggest IPO in almost 2 years

ARM determines the price of a share in an IPO At $51This puts the British chip designer at the upper end of the previously determined spectrum.

So the total valuation of the company is 54.4 billion dollars (over 50 billion euros). reports Business news agency Bloomberg. It’s the highest valuation for a Wall Street-listed company since electric car maker Rivian’s IPO in November 2021 ($77 billion).

‘Main Barometer’

It’s been a while since the IPO of an interaction like this. Although U.S. stock markets have gone public more often than those in Europe in recent years, companies in the U.S. are still reluctant to go public because of high inflation and interest rates. Excitement is back with ARM’s IPO: ARM’s major customers include Apple, Google and Samsung know in advance That they will buy the shares themselves.

“ARM’s IPO is an important barometer for other IPOs,” says RTL Z stock market commentator Jacob Schoenmaker. “There is above-average interest in this IPO. Not only because of its size, but because it’s actually the first IPO at particularly high interest rates. If interest rates were at 0 like before, every company would attract investors. But ARM now has to compete with around 5 percent interest on government bonds.”

ARM’s IPO is good news for investment banks. At the beginning of this month, a total of approximately 28 banks were involved in the transition to the stock market $108 million (100 million euros).

Artificial intelligence

ARM doesn’t make chips, but designs the architecture of processors. In the summer of 2016, the company was acquired by Japanese SoftBank for 29 billion euros. More recently, US chip giant Nvidia went after ARM, but that acquisition was blocked by regulators due to competition concerns.

ARM’s chip designs are available in a variety of products. From iPhones and Android devices, to data centers and applications with artificial intelligence (AI). ARM hopes to benefit from advances in AI, especially in the short term.