Arm shares set to start trading in biggest IPO in almost 2 years

• Arm will become the biggest IPO in the US since 2021 when it makes its market debut on Thursday.
• The chip designer will be valued at $52 billion and raise about $4.9 billion, per Bloomberg.
• Arm's IPO could prompt more firms to list after a prolonged slump.

Arm, the chip designer owned by SoftBank, will become the biggest US IPO since 2021 when it makes its market debut on Thursday.

The listing will raise about $4.9 billion and value the company at about $52 billion, the Financial Times reported, although calculations by Bloomberg News put the total at about $54.5 billion.

The shares were priced on Wednesday at $51, at the top of the $47 to $51 range following high demand for the stock.

Only about 10% of the company will be sold, with SoftBank retaining the rest. Relatively scarce supply could push the price higher when trading begins.

Arm's IPO could prompt more firms to go public following a prolonged slump in listings over the past 18 months.

The listing will also be a measure of enthusiasm for AI-related stocks.

Although Arm is not familiar to consumers, its technology is used in more than 90% of smartphones.

The company said in its prospectus that about 70% of the world's population used Arm-based products.

The listing is the biggest since Rivian's near-$12 billion debut in October 2021.

Not everyone is sold on the company's potential to revive the faltering IPO market, however. Some commentators have voiced their concerns on the broader outlook, with one comparing it to the aftermath of the dot-com bubble in 2000.