Arm Shares Jump 25% In Nasdaq Debut, Boosting IPO Market Enthusiasm

Shares of closed up nearly 25% on Thursday, their first day of trading on the , in the most hotly anticipated technology IPO of the year. The British chip designer’s successful debut is likely to breathe new life into a depressed IPO market that has paused many venture-backed startups鈥� plans to go public for the past two years.

“This pop can get people more excited about the IPO market for the rest of this year and going into 2024,” Owen Lau, senior analyst at , .

Last month, grocery delivery startup and marketing analytics company also filed their initial public offering plans, in another signal that the IPO drought may finally ease. Peer-to-peer car rental platform , which first filed to go public in early 2022, also submitted an updated registration statement.

Arm raised around $4.87 billion in the offering, which makes it the largest tech IPO since electric vehicle-maker went public in late 2021. still controls about 90% of Arm鈥檚 shares following the IPO.

Many of 2021鈥檚 IPOs have not gone on to great success as public companies 鈥� close to half of the 171 companies that went public in 2021 at billion-dollar-plus valuations and that are still trading are now worth less than $500 million, according to a recent analysis of The SA国际传媒 Billion-Dollar Exits Board.

The few companies that have ventured onto the public markets this year have also posted a very mixed track record.