We will push ahead to the other companies lining up to go public. We will also look at the process for digital dollars with fitz giancarlo. Before we head over to the nasdaq with Caroline Hyde we are also getting indication that arm may open shortly. We are giving estimations of starting at 66. Lets see where we had. Caroline how important is this arm listing. It is important. It needs to trade well. This is a moment in time where everyone is paying attention and markets have been open to Great Companies for some time now. It has really been on the supply side and arm is said to unlock that. Caroline many people want this to be a bellwether, its at the Tipping Point of ai, how hard is it to the square of demand what is happening behind the scenes . Karen its important to get the opening cross right. We provide technology to the person opening the stock which is jp morgan in this case. We turned it into more of a science than an art that is still in our. You want enough buyers and sellers enterprise the opening at a level that it will trade well. Caroline when you have the technology, how is it apart from other listings . Karen the underwriters have more information thats helpful to them. There are other factors, brand alignment is important. The fact that we own and operate and differentiate the services. We build relationships in our company throughout the life cycles. Caroline when arm with public back in the 90s there were a lot more companies. How does it look as a Company Looking so public at the moment . Is it desirable . Karen we would say so and we do a lot of work with the sec and to work with our issuers around that. We want to focus on the issues that are important and we want the cost to remain reasonable for companies. Caroline looking at Compliance Costs and volatility more broadly, what could be the catalyst in 2024 . When will we see windows open and close . Karen i think arm will open a window and companies are ready to go public. A lot of Companies Want to go in the first half of 24 ahead of the election. Caroline so there is geopolitical risk in this. You are ahead of global listing and how are you seeing the pushes and pull of the global narrative right now . Karen there is a lot of interest from Global Companies and chinese companies, latin america, india. The market is really open in the United States and very recognize. Caroline it is a better pill that they didnt manage to woo arm back. Are they not worried about the closing of the Investor Base to china . Karen it is a tricky time. I think everyone recognizes that the u. S. Market is the most liquid and everyone has to consider that when they go public regardless of where they are in the world. Caroline when we look at companies that could, after the next week or so. Im interested in what is the recipe . Will they have to demonstrate Profit Growth . Revenue growth . Karen i would say yes to both of those and they have to be priced at valuation that accommodates for the growth or not. Caroline what about the overall desire, did that speak to wanting to ensure share pop . Karen i think his view is longterm. It is the right thing to do for the longterm and i think you will find that investors love to get a little bit of a kiss and not every dollar that could have been taken is taken by the company and arm is thinking for the long term. Caroline they have a democratization of the banks and the way theyve been underwritten but have ensured that others can invest. Does that make it a recipe for others to follow suit . How difficult is it to replicate . Karen there are a lot of different factors that go into a Company Decision and how they put their book together, who their partners are. There is no one recipe that works for everyone. It depends on the company, the advice they are getting in the decisions they make around that. Caroline we will see some be in seen names. , will this recipe be crucial going into this next era of ira . Karen what is important to recognize about the Retail Investor they were an important part and they became more active. It does democratize the process and everyone is able to participate in so many people got educated about the Public Market and what that could mean for your overall wealth. Caroline it was so wonderful to speak with you. Sonali that was karen snow president of listings at nasdaq. What is interesting to me if you look at the price at 56 per share with a valuation of 60 billion, does arm have a global reach that justifies the price tag . Not in the near term but definitely in the long term. The company is just getting started. Sonali we are getting arm trading life at 56 and . 10 a share. That is more than five dollars above its ipo price. That is the ipo pop for arm holdings. This should take a few hours to get the first trade movie for the underwriters to make sure the book was built in time and is just about to spend the day as you can have for an ipo in the year where we have had virtually no ipos. At 56. 10 a share you are looking at a company that is worth near 59 billion. We will turn to abigail doolittle. This is a landmark day for arm. Abigail trading higher by nine. 5 there was a possibility they would price it 52 but the ceo wanted to make sure they were not too greedy and it seems that him and the bakers did a good job of raising the valuation on the actual ipo price. This is the biggest ipo of the year and the reason that matters is because last year there were 179 billion for the market in the year prior to that 630, there has been a drought this year. Will this ipo stake successful through to close. It will support instacart next week. Going into next year will it create what they want to see relative to having the confidence that big tech ipos can go . With the rising rates and inflation that makes Growth Stocks less attractive. We are looking at a positive opening here for arm holdings of 9. 8 , and oppressive ipo start. Sonali underwriting the deal with barclays, we will turn back, to talk about the valuation because were looking at a company that is 60 billion on his first day after its ownership and that implies a 22. 4 times of trailing sales what does that mean to you . Along with ai Companies Like in video, the future is coming from these markets. Sonali it is a good day on the markets, relative calm. The vix is low. There are a lot of risks on the horizon. If youre a new investors what are the risks you should be aware of impacting the valuation . In the near term, because they have heavily relied on the smartphone in the smartphone is going through a slump. Investors will have to be patient and pay for some heartache in the near term. The second key risk is china. From china, its the exposure and concentration. There is revenue coming from china which is not a lot. Everyone has exposure in that range. Is there a gateway to the entire Chinese Market . There is something sonali when you think about the long term how long is the long term . At least about three years. The market share is in the mid single digits. We expected to almost double in threefive years. These markets are large. The ai market is only adding to it. Sonali at this point you have arm in Public Markets how do you expect them to stack up against their competitive set when it comes to how investors will put money into the sector . They need to continue on the promise that they will deliver and investors will keep an eye on how they are doing in the data department. Sonali from bloomberg intelligence, thank you for your time. We will head back down to the nasdaq tower. Before those details what is the mood . It must feels pretty good to see an ipo pop after such a drought. Caroline there is cautious optimism. Now they see this trade trading up 30 . It takes a while to ensure they got the right amount. In this instance, the issue is they had 100 million taken down by important investors but they also have to ensure that people will be putting the less than 10 free flows and locking in profits. This is so important to the sentiment of the market. They went lower at 51 and now it will tradethe rest of the day. That is what the Companies Need to see. Sonali do you think their conservative approach to writing the ipo will be the name of the game for the companys coming up . Caroline is this idiosyncratic . They took time deciding they would not go for the 52 they would stick to 51 to get that really good data sentiment. He said yes he wants to see valuation increase but in the long term, we could see more of flows in stock or use it as collateral and financial engineering. We will see the likes of endicott having to decide to leave a little money on the table to make sure their Company Comes with the this has been a volatile market for some time. They have been waiting for this window to open. Sonali we thank you so very much for all of your time and such perfect timing. Lets continue the conversation on Venture Capital. What a win. Them having this on the books weather for their Portfolio Company but the appetite for other companies. Katie we have instacart coming up next week so they want to see public investors with enthusiasm for tech stocks. A 10 pop isnt that big of a pop. Typically you would see 2030 and prices have gone higher than 10 . The fact that it went up is good. The only big tech ipo we have had since 2021. People are watching closely even though its a pretty different sector than other Tech Companies. Sonali we are talking about pricing but what about ownership . In the last 24 hours, do you expect more investors to be doing that . That is designed for a better pop because if you limit supply, it artificially raises demand. We have seen that in the past and i think right now, most Tech Companies would be wise to price these things conservatively. At least that is what people are telling me. If you make a bad First Impression on the market it can get investors in the long run. Sonali i know youve been running around and doing reporting. What has been the name of the game . Its not just about profitability. They tend to be Growth Investors and look at companies with Topline Revenue growth and public investors use be interested in that but that seemed to change. We see with instacart that they are profitable in line with the perception of what tech investors want but they have had slow growth. That is one people will be watching. Sonali how do you think about the week ahead, the bankers will be busy with both of these companies, blessed timeline . You have instacart in next week. Sonali with data breaks making more money, but is that mean . You have other companies that raise money before the ipo. A lot of Companies Know when they need to raise high valuations or flat valuations in the last year. Data breach is a company that has a lot of investor interests of even though the price is high theyve been able to sustain that. When i see a company like this raising money i think they are not on the verge of ipo. You would not want to dilute your ownership in the next two months if you would do a direct listing. Sonali let me give you an update on where arm is trading. The ipo pop is still holding. This has been rising as much as 15 . Some of those gains are volatile but some of those pots could be as large as 10 . The stock is up to more than 50 a share. It was at twice 51. They tried to bring it up to 52 a share but bringing it down has not only given it an initial pop but even more than it wouldve been had they price it higher. There have been bigger pops in history but there were questions coming into this ipo from the beginning about the valuation itself. This is stacking up for a win for the underwriters. When you take a look at the Competitive Dynamics why do you think its getting such a warm reaction the Public Markets . Ian the set up of the mechanics of the ipo. This is just a small portion of the company by strategic investors. So theres very little supply here in terms, but this is the time when people are focused on the opportunities ai are creating for these company. Sonali do you think this excitement around the new kid on the block or the idea that they will continue to keep spending . Ian they are really not the new kid on the block. They have been around for a long time. Technology is used everywhere and used by all the latest chipmakers. They are pitching themselves as a Different Company that sells the barebones that goes into these chips. There are selling themselves as a broader tech company. Sonali the governance all points to softbanks. Ian thats the way to describe it, softbanks will maximize its profits down the line. That is definitely an overhang or consideration but at the same time it gives them the latitude that other publicly traded Companies May not have. Sonali we wanted touch back in with arm shares. We are looking at the ipo pop. We are looking at 61 a share. A price here that is 20 more than what we initially counter price that just last night. What is this mean in terms of valuation . You are watching the company shoot higher very quickly. The current valuation at 65 billion is a little bit higher than what softbank had brought back just a couple of weeks ago. This is bloomberg. With your hearing, if you start having a little trouble, youre concerned that its going to cost you money. To this day i only paid what i had to pay for the device. When i go back everything is covered. Theres so much youre missing by not having hearing aids. Well find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. Call miracle ear at 1800miracle and schedule your free, no obligation hearing evaluation today. The power goes out and we still have wifi anto do our homework. E, and thats a good thing . Great in my book who are you . No power . No problem. Introducing stormready wifi. Now you can stay reliably connected through Power Outages with unlimited cellular data and up to 4 hours of battery backup to keep you online. Only from xfinity. Its an amazing thing home of the xfinity 10g network. When you show generosity of spirit to someone. And you want people to be saved and to have a better life, then you dont stop. The idea that we have saved five million peoples lives, its overwhelming. Its everything. Sonali welcome back to bloomberg technology. We will look quietly at the arm ipo price. You are getting a 20 pop in the first day of trading. That is about 60 a share. It is up immediately from the 51 it was priced out. You are getting a price very near what they bought their stake back for. We have one of the underwriters from the arm ipo. What is it mean for the company that they can finally make it back to market . Sonali we will get right back to you because we are standing by. We have the ceo with our own Caroline Hyde. Caroline this is your day. There have been phone calls, emails, celebrations, how does it feel . What an amazing day. Hearing from high school friends. Most of all i am so thrilled for the employees of this 33yearold company, great heritage. Watching all of the employees celebrate was great. Caroline and celebrating a 17, 18 increase. You have been able to successfully sell, what do you want to see here Revenue Growth . What drives you . Investors wanted to understand the opportunity we had in front of us and ai. Help people understand you cant run ai without his cq. That was a big part of the process. Caroline because everyone has the equivalent of a iphone. How certain are you of the revenue that you can deliver the address the concerns or where and a hype cycle . Rene we are seeing it in cloud and data center with the growth of nvidia. Arm is everywhere related to ai. It allows us to have a big vision for our future when it comes to our product. We have very high confidence of the growth rate. I think there are a lot of questions about china and geo politicals. We had great growth in the data center and china has been using electric vehicles. We have the same headaches that every tech ceo has. Caroline do you think there will be more pressure that your public again . You are listed in 2013 but in 2016 the game changed . Rene there are some things we can do as a private company that are different but arm is not something you measure quarter to quarter but over years. Caroline you have a lot of vested interest in your clients, how important are their voices versus the masses . Rene one of the challenges is that were everywhere. None of this work so must refinance with others. We need to have a lot of engagement with partners and make sure were achieving of balance. Its not about the daytoday but the longterm vision. I dont expect that to change by going public. Caroline do you think you will go public in the u. K. . Rene today we are in the u. S. But we are a u. K. Company. Caroline before you get through today, investors love all things developing Artificial Intelligence but how is your story different . They are exuberant about gpus. Rene one of the benefits of the roadshow is speaking with investors and the misconception is that the gp can run without his cpu. Thats just not the case is central to every electronic device. Once the investors got that, i told them you need his cpu and at the same time nvidia is making more sophisticated products. And then the light went off. Caroline we are trying to understand how the landscape works with Global Demand and that can make a revenue. It doesnt always immediately turn into revenue. How will that become evident to you in the next few quarters . Rene in terms of ai . While its already been here for a number of years. Were just now finding out the full capability of what we can do Going Forward. There tends to be lightning bolt moments that accelerate the adoption of technology and with ai, we have seen an acceleration of tha