SoftBank's Arm rises as IPO research quiet period winds down

Klaviyo

06/10/2023 17:52

** Shares of British chip designer Arm Holdings plc  ARM.O 
up 2.2% at $53.69 on Fri ahead of potential wave of analyst
initiations as IPO research quiet draws to a close
    ** Barclays, Goldman Sachs, JP Morgan, Mizuho, BofA and Citi
among nearly 30 underwriters on the IPO and have been required
by industry practice to wait until Oct 9 to start coverage
    ** As of Fri, 4 brokerages cover ARM with 3 "hold" ratings
and 1 "strong sell", per LSEG data; median PT of $48 is below
the $51 IPO price
    ** Analysts at Susquehanna pointed to co pushing royalty
rates, while Bernstein downplayed potential benefits of
artificial intelligence (AI}
    ** SoftBank-controlled  9984.T  ARM's stock closed at $63.59
in its Sept 14 debut and traded as high as $69 the next day
    ** ARM, grocery delivery app Instacart/Maplebear  CART.O 
and marketing automation firm Klaviyo  KVYO.N  got off to a hot
start in debut last month, but their stocks have pulled back
sharply since, muting expectations of an IPO market resurgence
    ** CART down $4.7% at $24.96 on Fri, though KVYO gaining
5.0% to $32.86

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))