Arm
stock was set to rise for a second day after the chip designer went public in the biggest initial public offering of 2023.
Traders were flocking to the shares, with premarket volumes much higher than other popular stocks.
Shares in Arm (ticker: ARM) jumped 25% on Thursday as the chip designer made its debut in New York, with the stock up 1.5% in Friday’s premarket session, paring gains after the shares had risen 8%. The company was outperforming the wider market, with
S&P 500
futures up 0.1% and contracts tracking the tech-heavy
Nasdaq
down 0.1%.
The company’s IPO has attracted significant investor attention, with the stock garnering a premarket trading volume of 4.4 million shares as of 7:30 a.m. Eastern time, according to Dow Jones Market Data. For reference, the next two most actively traded stocks in the premarket—
Tesla
(TSLA) and
Apple
(AAPL)—had volumes of around 1.2 million and 420,000, respectively.
“Strong appetite among investors for new issuance,” said Neil Wilson, an analyst at broker Markets.com. “Cornerstone investors played a big part, but retail was showing interest.”
Arm designs chips for a range of semiconductor manufacturers, with its processor designs used in almost every current smartphone. The company’s go-public is the biggest listing in almost a year and has the potential to kickstart capital markets that have been in a lull in 2023—a win for start-ups and Wall Street alike.
Write to Jack Denton at [email protected]
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