Arm trades up in IPO debut that values firm above opening valuation of $54.5B

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Arm, the chip architecture firm owned by SoftBank Group, raised $4.7 billion in its initial public offering that valued the company at more than $54.5 billion.

Trading on Nasdaq debuted above the $51 a share price, starting at $56.65 a share and rising to $60.06 a share in mid-morning trading Pacific time.

Cambridge, United Kingdom-based Arm chose to go public in the U.S., creating demand for the largest IPO in U.S. in the past two years. The company has a 99% market share in mobile phones, and it has made incursions into markets such as processors for PCs and servers.

Arm’s devices are always energy efficient, as the company’s architecture is a descendant of RISC computing, which focused on energy efficiency while Intel’s rival architecture focused more on performance.

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But the weak global market has hurt sales lately. Overall sales totaled $2.68 billion in the 12 months ending March 31, compared to $2.7 billion in the year earlier period. Arm has tried to compensate by moving aggressively into the automotive chip market and other areas as well.

“When you think about the breadth, and the pervasiveness of what we’ve achieved when you think about the fact that we’ve built the most pervasive CPU architecture in history, [our partners] have shipped 250