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Arm: The Biggest IPO of 2023

Arm: The Biggest IPO of 2023

Also, Starbucks CEO Schultz retires.

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Today is Thursday, September 14, 2023.

The Early Bird Index today is 57.16.

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Arm: The Biggest IPO of 2023

Chip designer Arm Holdings (Nasdaq: ARM) goes public today for the largest initial public offering of 2023.

Details: The IPO for Arm Holdings will consist of 95.5 million shares of stock priced at $51 per share. This stock price represents the top range of what analysts expected it to be. The underwriters also have an option to buy up to 7 million additional shares. Altogether, PitchBook puts the valuation for Arm at $54.5 billion, making it the largest valuation for an IPO this year.

More Details: SoftBank will own about 90% of Arm, according to CNBC. Several other tech companies also plan on buying shares of the company.

Background: Founded in 1990, Arm produces semiconductors that are used in many different products. Because of the demand for semiconductors, Arm has seen its valuation skyrocket.

Yes, But: Investors might be tempted to buy Arm’s stock when it goes public. While some IPOs are risers, many have flopped. Take a look at two recent IPOs this year: CAVA Group (NYSE: CAVA) is down 6% and Kenvue (NYSE: KVUE) is down 18%.

Final Thoughts: Arm’s IPO is a big deal for the entire IPO market. The past year or two for IPOs has been lackluster. With Arm, the IPO market is back in the spotlight.

Notables

Notable Earnings Today: Adobe (Nasdaq: ADBE), Lennar (NYSE: LEN), RF Industries (Nasdaq: RFIL), LightPath Technologies (Nasdaq: LPTH), eGain (Nasdaq: EGAN) Mytheresa Group (NYSE: MYTE), Copart (Nasdaq: CPRT), High Tide (Nasdaq: HITI), Mitek Systems (Nasdaq: MITK),iPower (Nasdaq: IPW).

Notable IPOs Today: Arm Holdings Ltd (Nasdaq: ARM), Defiance Nasdaq 100 Enhanced Options Income ETF (Nasdaq; QQQY), Bushido Capital US Equity ETF (Nasdaq: SMRI), JPMorgan International Value ETF (Nasdaq: JIV), JPMorgan Global Select Equity ETF (Nasdaq: JGLO).

Notable Equity Crowdfunding Campaigns Ending Today: Vita Imaging (StartEngine), Prepared Plants (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Producer Price Index / Core PPI (8:30 a.m. ET), Retail Sales / Core Retail Sales (8:30 a.m. ET), Business Inventories (10:00 a.m. ET), Retail Inventories Ex Auto (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Starbucks CEO Schultz Retires

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It was the end of an era on Wednesday as Starbucks (Nasdaq: SBUX) founder Howard Schultz stepped down from the board of directors as part of a planned transition.

Details: Announced in after-hours trading, Schultz is leaving after 41 years at the company. Starbucks also announced Wednesday that Wei Zhang, who most recently served as senior advisor to Alibaba (NYSE: BABA), will join the board.

Background: Schultz returned to Starbucks as CEO in March 2022 and left a year later. During that time, Starbucks faced challenges such as weaker sales and unionization.

Stock Price: Starbucks is down 3% this year, including a 4% drop in the last 30 days.

Final Thoughts: It might be tough for Starbucks to turn the company around in 2023. A decline in consumer spending could make things worse for the company.

Visa’s Exchange Offer Program

Visa (NYSE: V) declined by 1.17% in after-hours trading on Wednesday after announcing that it was engaging with shareholders about a possible exchange offer program for shares.

Final Thoughts: Despite economic headwinds, Visa’s stock is up 19.50% this year. The stock is dependent on the state of consumer spending.

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