SoftBank-Backed Arm Dips Below IPO Price After Just One Week
- Stock drops as much as 5.8% to fall below its $51 IPO
- Analysts have cautioned over valuation, benefits from AI boom
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Chip designer Arm Holdings Plc fell below its initial public offering price just one week after a highly-anticipated debut was seen as a signal that the market was ready to reopen to fresh listings.
The SoftBank Group Corp.-owned company fell as low as $49.85, dropping below the $51 it sold American depositary shares at in the year’s biggest IPO, before paring losses to close at $52.16. The company raised $5.23 billion last week before rallying 25% in its debut session. The excitement didn’t last long with the stock falling for five-straight days to wipe out most of the pop.