Arm Traders Brace for a Selloff as Lockup Lifts After Rally
- SoftBank to get first chance to cash in after September debut
- Arm’s 149% rally before expiry makes unloading shares tempting
Rene Haas, chief executive officer of Arm Ltd., center, rings the opening bell during the company's IPO at the Nasdaq MarketSite in New York, on Sept. 14, 2023.
Photographer: Michael Nagle/BloombergArm Holdings Plc has more than doubled from a September debut on excitement about demand for semiconductors used in artificial intelligence computing. That’s made the stock tempting for insiders to sell, with a lockup expiring on Tuesday.
Most public offerings are accompanied by a six-month lockup period that prohibits insiders from selling their holdings. That limits the float, or quantity of shares available to trade, which can make for big swings in the price of a stock such the SoftBank Group-backed chip designer, which has one of the loftiest valuations at more than 33 times projected sales.