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IPO: SoftBank's Arm files for Nasdaq listing
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The number of companies applying for IPOs in the secondary market can somehow serve as an indicator of the market's condition and sentiment. Show More
The number of companies applying for IPOs in the secondary market can somehow serve as an indicator of the market's condition and sentiment. When the market is performing well and capital liquidity is high, private companies tend to be more willing to go public and raise funds from the public.
On August 21st, the UK-based chip design company $Arm Holdings (ARM.US)$ , which is under $SOFTBANK GROUP CORP (SFTBF.US)$ , submitted an application to the SEC with the intention of listing on the NASDAQ stock exchange under the ticker ARM. It is positioned to become the largest IPO of 2023 and the third-largest IPO in the history of the tech industry, trailing behind only $Alibaba (BABA.US)$ and $Meta Platforms (META.US)$ . SoftBank has already learned a costly lesson about the consequences of missing out on hot trends in chip investment. Six years ago, the company purchased $3 billion worth of $NVIDIA (NVDA.US)$ shares, a leader in the AI market. If SoftBank had held onto those shares instead of selling for a short-term gain, the stake would now be valued at $50 billion—likely surpassing the total value of Arm when it goes public.
1) Have you ever engaged in stock trading within a week of its IPO?
2) Do you have any hacks or risks to be mindful of when trading stocks immediately after an IPO?
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